A Cayman Islands exempted company must file an annual economic substance notification, submit its annual return, and pay its annual registration fee to the Cayman Islands General Registry every January, with a final deadline of the last business day of March. Companies carrying on a “relevant activity” under the economic substance regime, or registered with the Cayman Islands Monetary Authority (CIMA), face additional annual filings and fees on top of these core requirements.
Annual Economic Substance Notification
All Cayman Islands entities and foreign registered companies must file an Annual Economic Substance Notification with the Department for International Tax Cooperation (DITC), confirming whether they carry on a “relevant activity” under the International Tax Co-operation (Economic Substance) Act. This notification is filed in January, ahead of the annual return, and is typically handled by the entity’s registered office provider.
Annual return and annual fee
The annual return and annual registration fee are due every January, commencing the first January after the company’s registration, and must reach the Cayman Islands General Registry by the last business day of March before 5pm to avoid penalties. The return records the company’s type, incorporation date, registration number, registered office address, authorised share capital, and financial year end, along with a declaration regarding where its operations are conducted.
Economic substance return for relevant entities
Entities that carry on a relevant activity, such as fund management, holding company, or headquarters business, and that are required to satisfy the economic substance test, must also file an annual Economic Substance Return with the DITC within 12 months of their financial year end. Late filing carries a substantial penalty, plus a further daily penalty for continued non-compliance.
CIMA registration and licensing fees
Entities registered or licensed with CIMA, including mutual funds and private funds, must pay their annual licensing or registration fee by 15 January. CIMA-registered or licensed directors have a parallel obligation under the Directors Registration and Licensing Act. Missing these deadlines exposes the entity or director to CIMA’s Administrative Fines Regime.
Books of account and beneficial ownership
Every company must keep proper books of account and, if those books are kept outside the Cayman Islands, provide information about them to its registered office annually. The company must also keep its Beneficial Ownership Register current throughout the year, notifying its registered office of any change as soon as reasonably practicable.
Because most of these deadlines cluster in January, Cayman Islands entities typically settle registered office fees before year-end so their provider can file everything on time.
Related questions: What is the annual return filing process for a Cayman Islands company and when is it due? | What happens if a Cayman Islands company fails to pay its annual fees or file its annual return?
wb.group manages the full annual compliance cycle – economic substance notifications, annual returns, and CIMA filings – for its Cayman Islands clients. Contact us to plan your year-end obligations.
FAQs
A Cayman Islands exempted company must file an annual economic substance notification, submit its annual return, and pay its annual registration fee to the Cayman Islands General Registry every January, with a final deadline of the last business day of March. Companies carrying on a “relevant activity” under the economic substance regime, or registered with the Cayman Islands Monetary Authority (CIMA), face additional annual filings and fees on top of these core requirements.
Annual returns and fees are due in January of each year, commencing the first January after the company’s registration, with a final deadline of the last business day of March before 5pm.
No. A Cayman Islands exempted company is not obliged to hold an annual general meeting, though it must still satisfy its filing and record-keeping obligations.
It is a filing made to the Department for International Tax Cooperation (DITC) each January, before the annual return, in which every Cayman Islands entity confirms whether it carries on a “relevant activity” under the economic substance regime.
Yes. In addition to the Registrar’s January-to-March annual return cycle, entities registered or licensed with CIMA must pay their annual licensing or registration fee by 15 January and, for private and mutual funds, file a Fund Annual Return within six months of their financial year end.