Cayman Islands Segregated Portfolio Companies are governed by the Cayman Islands Companies Law.
A Segregated Portfolio Company is a single legal entity and is a variant of the Cayman Exempted Company. An Exempted Company can apply to convert to a Segregated Portfolio Company.
A Segregated Portfolio Company comprises the "core" and the "cells" or the "segregated portfolios".
The name of a Segregated Portfolio Company should include the words "Segregated Portfolio Company" or "SPC". Each Segregated Portfolio should each have a distinct name and must include the words "Segregated Portfolio" or "SP".
The Segregated Portfolios are not separate legal entities.
The Cayman Islands do not levy any corporation tax, income tax, capital gains tax, inheritance tax, or gift tax.
Assets & Liabilities
The assets of a Segregated Portfolio Company are either segregated portfolio assets or general assets.
The assets and liabilities of the Segregated Portfolios are statutorily segregated i.e. the assets and liabilities of each cell are ring-fenced from each other, meaning that the creditors of a segregated portfolio cannot seek recourse from the assets of the other segregated portfolios or from the core.
Assets which are not allocated to a specific segregated portfolio are regarded as general assets of the core.