An overseas company which 1) establishes a place of business; 2) commences carrying on business within the Cayman Islands (even ‘offshore’ business); or 3) proposes to own real estate situated in the Cayman Islands, must register as a ‘foreign company’ (essentially registering a branch) under Part IX of the Companies Act.
A registered Cayman Islands branch will not have a separate legal personality from the main company headquartered overseas. In many cases, this is desirable for group operations which are required to maintain tax residency in a certain jurisdiction but wish to have a Cayman Islands presence from which to conduct certain business of the group.
In the case of a bank, trust company, insurance company, management company, mutual fund, mutual fund administrator or any entity carrying on securities investment business, a licence to conduct such business will be required from CIMA, notwithstanding that the business is actually conducted outside the Cayman Islands. A Cayman Islands branch is able to secure a T&B Licence and, if necessary, a LCCL Licence in order to comply with the necessary legal requirements to set up a physical presence in the Cayman Islands.
