Cayman LLCs: One Year Old And Boldly Striding Forward

Arguably the most prominent non-regulatory legal development in the Cayman Islands in recent times has been the introduction of limited liability companies ("LLCs"). LLCs became available after the corresponding enabling legislation, the Limited Liability Companies Law ("LLC Law"), came into effect in July 2016.

In the intervening period, LLCs have been newly formed and otherwise come into existence by way of mergers, conversions and inward migrations. There were in excess of 600 LLCs registered in the Cayman Islands as at the end of August 2017.

The registration statistics, together with a detailed analysis of the purposes for which the over 300 LLCs that we have registered have been employed, support our initial expectations when drafting the LLC Law; namely that LLCs would be a helpful additional structuring option that would complement traditional Cayman vehicles, notably the exempted company and exempted limited partnership. The popularity of exempted