Company Registration & Partnerships: The cornerstone of Cayman's financial industry, company registration, continues to experience steady growth with over 8,000 companies registered in a typical year. The Company Registry is responsible for the licensing of corporations under the Companies Law (1998). All corporations required to be licensed under any law - Banks and Trust Companies Law (2001 Revision), the Insurance Law (2001 Revision), the Mutual Funds Law (2001 Revision), and the Companies Management Law (2001 Revision) - must also be registered with the Registry of Companies. A company wishing to trade within the Cayman Islands, e.g., in retail trading, real estate, hotel operation, restaurants, maintenance services or local shipping, must obtain a license under the Local Companies (Control) Law, and, if less than 60 percent of the equity is Caymanian-owned, the Trade and Business Licensing Board will have to be convinced of the need for the company’s services. REGISTRATION AND ANNUAL FEES: Fees currently payable to the Registrar of Companies are given below (all figures in Cayman Islands dollars [CI$1=US$1.22]). Resident Companies: Upon registration and annually thereafter, there is a fee of $150 for companies with capital of $42,000 or less; companies with capital in excess of $42,000 pay $350. Non-resident Companies: Upon filing Memorandum and Articles of Association and on delivery of the annual return each January thereafter, companies with capital of $42,000 or less pay $400; companies with capital in excess of $42,000 pay $565. Exempted Companies: Upon registration and delivery of the annual return each January thereafter, there is a fee of $470 for companies with capital of $42,000 or less; companies with capital in excess of $42,000 but not exceeding $820,000 pay $660; companies with capital in excess of 820,000 but not exceeding $1.64 million pay $1,384 and companies in excess of $1.64 million pay $1,968. Segregated Portfolio Companies: The registration and annual fee for the Segregated Portfolio Company is the normal exempt registration fee plus $2,000. In addition, there is a fee of $1,000 for each segregated portfolio therein. Foreign Companies: On delivery of the prescribed documents for registration of a foreign corporation and each January thereafter, there is a fee of $850. LIMITED PARTNERSHIPS: Limited partnerships are governed by the Partnership Law (1995 Revision), which requires them to be registered with the Registrar of Limited Partnerships. Registration is affected by the filing with the Registrar and the gazetting of a declaration by all the general partners, giving the name of the partnership, the nature and principal place of business, names and addresses of all partners, and the amount of capital provided by each limited partner. A limited partnership may be established by two. TYPES OF COMPANIES: Resident Companies: - Resident companies must maintain at their registered office, open for public inspection, a register of their past and present members. They must also report annually to the Registrar, giving the names and addresses of members, directors and the amount of paid-up capital. This type of company is also allowed to hold land as defined under the Companies Law (1998 Revision). Non-Resident Companies: - The non-resident company is an alternative to the exempted company. Such companies must also maintain at their registered office, open for public inspection, a register of their past and present members. They must also report annually to the Registrar, giving the names and addresses of members, directors and the amount of paid-up capital. The company may deal in shares of exempted companies, foreign corporations and partnerships, but may only carry on such other business in the Cayman Islands as is necessary for the furtherance of its foreign business. Application for non-resident status should be addressed to the Financial Secretary through the Registrar of Companies and must state that the company does not intend to carry on business within the Cayman Islands. Non-resident companies may convert to Resident Companies or to Exempted Companies. Exempted Companies: - Where the proposed activities of a company are to be carried out mainly outside the Cayman Islands — offshore — the promoters can apply for registration as an exempted company.  Features of such companies include the following: An exempted company need not keep a register of members open for public inspection (This is a requirement for resident and non-resident companies.), an exempted company need not hold an annual general meeting (which resident and non-resident companies must), but the Board of Directors must hold a meeting at least once a year in the Cayman Islands, an exempted company may alter its Memorandum and Articles of Association without restriction, but must notify same to the Registrar, it can offer shares to public in Cayman if listed on the Cayman Islands Stock Exchange (CSX), it may issue shares with nominal or no par value. The annual return to the Registrar is a simple matter, requiring only the declaration that: — no changes, other than those notified to the Registrar, have been made in the Memorandum of Association; — the provisions of the Companies Law have been observed; and — the company’s operations have been mainly outside the Cayman Islands. An exempted company need not include the word “Limited” or the abbreviation “Ltd.” after its name. The Registrar must give one month’s notice before taking action to strike off an exempted company. An exempted company may express its capital in any currency. Special provisions have been introduced to deal efficiently with share capital or guarantee amount expressed in currencies replaced by the euro. It should be noted that an exempted company which is empowered by its Articles of Association to issue bearer shares, certificates or coupons cannot hold land in the Cayman Islands. An exemption allowing the holding of land may be obtained from the Financial Secretary where the company has neither issued nor is empowered to issue any such shares.