Cayman Islands Exempted Limited Duration Companies are governed by the Cayman Islands Companies Law.
The Companies Law allows for an Exempted Company to be registered as a Limited Duration Company.
An Exempted Limited Duration Company is a variant of the Exempted Company.
The duration of an Exempted Limited Duration Company should be up to 30 years.
Upon the lapse of the duration of the company it is deemed to have automatically commenced voluntary winding up and dissolution.
An Exempted Limited Duration 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.
The name of an Exempted Limited Duration Company should include the words "Limited Duration Company" or "LDC".
The main advantage of an Exempted Limited Duration Company is that it preserves the limited liability of members, but has some characteristics of a partnership (e.g. limited duration and non-transfer ability of interests without the consent of all members) which may lead to a favorable tax treatment for its members in certain foreign jurisdictions where it may be treated as a partnership.