The Foundation Companies Law, 2017 introduced a new type of
company in the Cayman Islands, the foundation company. This expands
the options available to businesses, which includes the
introduction of the Cayman Islands LLC in 2016.
A Foundation is similar to a traditional exempted company in
that it has separate legal personality and limited liability but it
also shares some similarities with a civil law foundation or common
law trust. A Foundation can be seen as a hybrid of a company and a
trust incorporating elements of both, and allowing a great deal of
flexibility.
A Foundation therefore has the advantage of being able to be
used as an alternative to a trust, which is commonly used in wealth
planning and certain capital market transactions. It is anticipated
that the Foundation will particularly be of interest to private
clients from a civil law background who are unfamiliar with the
common law trust or who have concerns about the tax treatment of
trusts. The
