Under the Cayman Islands Economic Substance Act (“ESA”) legislation*, certain entities formed or registered in the Cayman Islands are required to have economic substance in the Cayman Islands.
All existing Cayman Islands entities, including partnerships, (a “Relevant Entity“) must annually notify the Registrar of Companies whether they are in scope or out of scope for ES Reporting, including the reasons that they are either in or out of scope, by 31 January each year (“ES Notification”). There is a grace period for filing the notification until 31 March, however, if the notification has not been filed a certificate of good standing will not be issued by the Registrar of Companies after 31 January. After 31 March, late payment penalties will be levied (as it is not possible to pay the annual government fees until the notification is made).
If the Relevant Entity is engaged in a Relevant Activity, an ES Return must be filed annually within one year of the Relevant Entity’s financial year end.
3 Steps to ES Law Notification
- Review the decision tree to identify the form to complete for ES Notification and to determine if the Relevant Entity is in scope (red) or out of scope (green) for ES Reporting.
- Complete the required Notification Form. Click the
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