Cayman Islands Exempted Companies are governed by the Cayman Islands Companies Law.
An Exempted Company is prohibited from trading in the Cayman Islands. However, it may enter into contracts in the Cayman Islands, which are necessary to carry on its business outside the Cayman Islands e.g. contracts with service providers etc.
An Exempted Company may obtain an undertaking by the Cayman Islands Government confirming its tax-free status for a period of 20 years.
The name of an Exempted Company does not need to include the words "Limited" or "LTD".
The Exempted Company is the most common type of legal entity in the Cayman Islands.