Is It Time To Liquidate Your Cayman Islands Entity? - Corporate/Commercial Law - Cayman Islands - Mondaq News Alerts

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, explains Amrish Bhugoo, Senior Vice-President - Accounting, Regulatory and Compliance.

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 2022 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:

Private companies

The final general meeting (FGM) for a private company must be held before 31 January 2022 to avoid the 2022 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 September 2021 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 2021 and 2022. 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 2021.

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...



Read Full Story: https://www.mondaq.com/caymanislands/corporate-and-company-law/1112112/is-it-time-to-liquidate-your-cayman-islands-entity

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