If your Cayman company has naturally reached the end of its lifecycle, you'll need to take action to start the liquidation process ASAP to avoid 2024 annual government, regulatory and service provider fees. Amrish Bhugoo, Senior Vice President at Ocorian Trust (Cayman) Limited, reveals what you should consider when facing a voluntary liquidation in 2023.
What are the key deadlines when liquidating a company in the Cayman Islands in 2023?
For Private Companies
- Final general meeting must be held before 31 January 2024 to avoid the 2024 annual fees
- The dissolution process takes approximately six to eight weeks to complete and you may experience a delay via the Registrar of Companies due to the December rush
Our advice: Start the liquidation process by end of September 2023
For Reporting Financial Institutions (RFIs)
- There are regulatory requirements under FATCA and/or CRS
- There will be filing obligations for both 2023 and 2024 if the liquidation is not completed by 31 December 2023
Our advice: Start the liquidation process ASAP, ideally in September 2023
For Cayman Islands Monetary Authority (CIMA) registered funds
- Allow additional time to meet deregistration obligations
- Final audits, distributions and redemptions must be completed prior to commencing liquidation to avoid an extended liquidation timeline
- Final General Meeting held and CIMA de-registration completed prior to year-end to avoid 2024 CIMA fees.
Our advice: If dissolution is desired, the liquidation process should start ASAP
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.