Cayman Island Company Incorporation | Segregated Portfolio Setup

An SPC is a specialized exempted company formed under the Cayman Islands Companies Act that can establish multiple independent portfolios (cells) within a single legal entity. The assets and liabilities of each portfolio are legally separated to protect investors.

No. The Cayman Islands issues Exempted Companies and Segregated Portfolio Companies (SPCs). The term "IBC" is an outdated structure historically used in other jurisdictions, and Cayman entities operate strictly under the Companies Act.

The Cayman Islands levies no corporate income tax, no capital gains tax, and no withholding tax. This is a statutory position and is not conditional on passing Economic Substance tests. Investment funds are excluded from the definition of ‘relevant entity’ under the ES Act, so an SPC structured as a fund is not subject to the economic substance test. However, every Cayman entity must still file an annual Economic Substance Notification with the Tax Information Authority.

The nine relevant activities are banking business, fund management business, insurance business, distribution and service centre business, financing and leasing business, headquarters business, holding company business, intellectual property business, and shipping business.