In 2017 the Cayman Islands Government enacted legislation for the formation and registration of foundation companies.
Foundation companies are ideal vehicles for holding shares in operating businesses. Rather than shares in operating companies being held in the personal name of the business owner or founder, a foundation company can be established for the purpose of holding the family business structure. This is beneficial from an asset protection perspective, as the assets of the foundation company are separate and distinct from the personal assets of the business owner or founder. It also provides significant succession advantages, and, if structured correctly, can avoid the need for probate on the death of the business owner or founder.
The flexible framework of the Cayman Islands foundation company can be particularly attractive to businesses wishing to implement bespoke decision-making or succession protocols and can support the long-term sustainability and stability of a business structure.
