Client Director, Andre Slabbert details how opting for the voluntary liquidation of your Cayman company when it has naturally reached the end of its life cycle can save on entity dissolution costs.
If your Cayman company has naturally reached the end of its life cycle, making an early start to the dissolution process means you will avoid 2021 annual government, regulatory and service provider fees.
If you wish to liquidate a company, there are some timelines and deadlines that you need to consider:
The Final General Meeting (FGM) for a private company must be held before 31 January 2021 to avoid the 2021 annual fees. The dissolution process takes approximately six to eight weeks to complete and given potential delays at the Registrar of Companies with the December rush, starting the liquidation process by the end of August 2020 is advisable.
Reporting Financial Institutions (RFIs)
RFIs have regulatory requirements under FATCA and/or CRS and we are able to assist with the FATCA/CRS filings for both 2020 and 2021. Again, we recommend processing these sooner rather than later. The reporting is due to the fact that there will be filing obligations for both years if the liquidation is not completed by 31 December 2020.
Cayman Islands Monetary Authority (CIMA) registered funds
CIMA registered funds should allow additional time in order to meet their deregistration obligations. Final audits, distributions and redemptions must be completed prior to commencing liquidation to avoid an extended liquidation timeline. CIMA funds should complete the process with the FGM held prior to year-end to avoid 2021 CIMA fees. If dissolution is desired, then this process should start as soon as possible.
Our liquidation team
Working freely with the world's leading legal and tax advisers, we can assist you with lifting the administrative burden associated with liquidating your corporate structure(s). Please contact our liquidation team via their profiles below to commence the liquidation process, or for guidance in navigating your Cayman company requirements, contact email@example.com.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.