ES Law refers to new legislation introduced in the Cayman Islands which responding to the concerns and actions of worldwide unfair tax practices from EU. The new law requires certain entities that are incorporated or registered in the Cayman Islands, and which conduct one or more of a set list of nine relevant activities, to comply with local requirements and demonstrate adequate ‘economic substance’ either in or outside Cayman Islands.

Economic Substance Law refers to new legislation introduced in the BVI which responding to the concerns and actions of worldwide unfair tax practices from EU. The new law requires certain entities that are incorporated or registered in the BVI, and which conduct one or more of a set list of nine relevant activities, to comply with local requirements and demonstrate adequate ‘economic substance’ either in or outside BVI.

As set out by the BVI Business Companies Act (as amended) (the “Act”), a BVI company is required to keep the records and underlying documentation of the company and shall keep them for at least 5 years at the registered office or at such other place or places, within or outside the Virgin Islands, as the directors may determine.

Exempted companies are required to keep proper books of account with respect to its receipts and expenditures, sales and purchases of goods and assets and liabilities. The accounts must give a true and fair view of the status of the Company. The Cayman Islands Companies Law does not require the accounts of the exempted company be audited or filed to Companies Registry.

Exempted companies are not required to be ended with “Limited” or “Ltd” in Cayman Islands. The Registrar of Companies will not register a company that the name of which is identical or so nearly resembles to the name of an existing company. In addition, there are certain sensitive words such as “bank”, “trust”, “insurance” and “royal” required the consent from the Registrar of Companies in advanced.

Are there any restrictions on the registration of company name for BVI company? The name of the company must not be identical or similar with the name of any existing company in BVI. It must be ended with the word “Limited”, “Corporation”, “Incorporated”, “Societe Anonyme” or “Sociedad Anonima” or the abbreviation “Ltd”, “Corp”, “Inc” or “S.A.”.

The British Virgin Islands (BVI) is the world’s second largest investment funds domicile. The primary legislation in which regulates the investment funds in BVI is the Securities and Investment Business Act, 2010(SIBA).Investors of the open-ended funds have the right to redeem their fund interests on demand in accordance with the fund documents, while investors of the close-ended funds do not have right to redeem or withdraw their fund interests on demand in accordance with the fund documents.

Cayman Foundation company has features and flexibility that allow a company to retain separate legal personality and limited liability while functioning in a way similar to civil law foundation or common law trust. Foundation has a long history in civil law jurisdictions and their introduction was initially introduced for client who are uncomfortable transferring legal ownership of assets to a trustee.

With many traits of trusts and corporations, Panama foundations have wide variety of uses for estate planning since they were introduced. The foundation has a separate legal personality and limited liability while operating in a manner similar to both a company under civil law and a trust under common law.

Labuan was declared an international offshore financial center in 1990 and was later renamed Labuan International Business and Financial Center. It is directly managed by the Federal Territories Department of the Federal Government of Malaysia. The legal system of Labuan, like the rest of Malaysia, is derived from English common law.