The Cayman Islands Enacts the Limited Liability Companies Law, 2016
The new Limited Liability Companies Law, 2016 (the "LLC Law") was published on 8 June 2016.
The LLC Law has a delayed implementation date and will be brought into force by way of a separate commencement order, which is anticipated to be published and take effect in late-June 2016.
As soon as the LLC Law comes into effect, it will be possible to:
(a) form and register a new Cayman Islands limited liability company (an "LLC");
(b) migrate an entity organised in another jurisdiction into the Cayman Islands as an LLC (including from Delaware, whether for regulatory or other reasons);
(c) convert an existing Cayman Islands exempted company into an LLC; and
(d) merge an existing Cayman Islands exempted company into an LLC.
The core features of an LLC remain unchanged from those set out in our update of 18 December 2015. The LLC's flexibility will lend itself to a broad range of structuring applications and the vehicle is poised to become a useful addition to the Cayman Islands' product offering.
A copy of the LLC Law can be viewed here.
We will provide a further update once the commencement date for the LLC Law has been set.
We are able to provide more detailed information about LLCs upon request, including with respect to:
(a) registration and continuing requirements;
(b) inward migration and conversion requirements;
(c) a comparative overview as between LLCs and Delaware limited liability companies; and
(d) a comparative overview of key Cayman Islands vehicles: LLCs, exempted limited partnerships and exempted companies.
For further information, please contact your usual Maples and Calder team, any of the contacts above or access our legal guides.