Mondaq posted an article on October 15, 020, about technology and innovation in the Cayman Islands. Below are some key highlights:
- As one of the foremost offshore financial centres, home to approximately 70% of the world’s offshore investment funds and with an absence of any direct taxation on companies or individuals, the Cayman Islands has become an attractive destination for technology entrepreneurs.
- The Virtual Asset (Service Providers) Law 2020 (“VASP Law”) introduces the concept of a sandbox licence that provides the Cayman Islands Monetary Authority (CIMA) with the flexibility to regulate businesses that utilise innovative technologies or are engaged in activities that have the potential to benefit the financial services industry in the Cayman Islands.
- Technology companies seeking to carry on business within the local Cayman Islands market will be required to have certain levels of local ownership and participation, or an exemption from such requirements.
- Registration as a foreign company in the Cayman Islands is necessary to enable non-Cayman Islands companies to hold land or carry on business in the Cayman Islands, or to act as the general partner of a Cayman Islands Exempted Limited Partnership.
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