GEORGE TOWN, Cayman Islands – Enhancements to corporate legislation aimed at maintaining continued business growth and bolstering the Cayman Islands’ position as a global financial services centre of excellence and innovation will take effect on 1 January 2026, as stipulated by the Companies (Amendment) Act, 2024 (Commencement) Order, 2025.
The commencement order brings into force the Companies (Amendment) Act, 2024 (the “Amendment Act”), which introduces a range of modernised provisions to the previous legislation, namely the Companies Act (2023 Revision).
“These enhancements to the Companies Act ensure the Cayman Islands remains innovative and receptive to the evolving needs of global business. The Amendment Act enables our corporate framework to remain agile, cutting edge; while aligned with international standards,” premier and minister for financial services, André Ebanks said.
Enhancing competitiveness and commercial effectiveness
The enhancements to corporate legislation advance the government’s strategic objective under Broad Outcome 02: Enhance Competitiveness whilst Meeting International Standards, ensuring the Cayman Islands remains a leading and compliant jurisdiction for global financial services.
Key enhancements under the Amendment Act include:
- Streamlined capital reduction procedures: Solvent companies can now reduce their share capital in certain circumstances without the need for court approval, provided the reduction is supported by a solvency statement by the company’s directors. This reform provides flexibility, reduces administrative costs, and aligns with international best practices.
- Expanded continuation provisions: The Amendment Act broadens the framework for companies incorporated overseas to transfer their registration to the Cayman Islands with fewer procedural barriers.
- Flexible re-registration and conversion framework: New provisions facilitate seamless conversion between entity types — including limited liability companies, foundation companies, and exempted companies — enhancing the Cayman Islands’ versatility for financial structuring and investment vehicles.
Collectively, these enhancements modernise corporate processes, simplify transactions, and demonstrate the Cayman Islands’ responsiveness to evolving commercial and market needs.
Industry Collaboration and Legislative Development
The Companies (Amendment) Act, 2024 was developed through close consultation with the Financial Services Legislative Committee (FSLC), alongside extensive engagement with industry stakeholders, ensuring the improvements are both commercially effective and aligned with evolving international compliance standards.
The ministry expresses its appreciation to the FSLC and industry representatives for their collaboration and continued partnership in advancing the Cayman Islands’ legislative framework.
