Banking Business
An entity engages in "banking business" where it is in the business of receiving (other than from a bank or trust company) and holding on current, savings, deposit or other similar account money, which is repayable by check or order and may be invested by way of advances to customers or otherwise (cf. section 2 of the Banks and Trust Companies Law (2018 Revision)).
Distribution and Service Center Business
An entity engages in "distribution and service center business" where it conducts the business of either or both of the following:
(a) purchasing from an entity in the same corporate group: (i) component parts or materials for goods; or (ii) goods ready for sale, and reselling such component parts, materials or goods outside the Cayman Islands;
(b) providing services to an entity in the same corporate group in connection with the business outside the Cayman Islands,
but does not include any activity included in any other relevant activity except holding company business.
Fund Management Business
An entity engages in "fund management business" where it is in the business of managing securities as set out in paragraph 3 of Schedule 2 to the Securities Investment Business Law (2019 Revision) and is a relevant entity licensed or otherwise authorized to conduct business under that law for an investment fund.
Financing and Leasing Business
An entity engages in "financing and leasing business" where it is in the business of providing credit facilities for any kind of consideration to another person but does not include financial leasing of land or an interest in land, banking business, fund management business or insurance business.
Headquarters Business
An entity engages in "headquarters business" where it is in the business of providing any of the following services to an entity in the same corporate group:
(a) the provision of senior management;
(b) the assumption or control of material risk for activities carried out by any of those entities in the same corporate group; or
(c) the provision of substantive advice in connection with the assumption or control of risk referred to in paragraph (b),
but does not include banking business, financing and leasing business, fund management business, intellectual property business, holding company business or insurance business.
Holding Company Business
An entity engages in "holding company business" when it is a pure equity holding company.
A “pure equity holding company” means a company that only holds equity participations in other entities and only earns dividends and capital gains.
Insurance Business
An entity engages in "insurance business" where it is in the business of accepting risks by effecting or carrying out contracts of insurance, whether directly or indirectly, and includes running-off business including the settlement of claims (cf. section 2 of the Insurance Law, 2010).
Intellectual Property Business
An entity engages in "intellectual property business" where it conducts the business of holding, exploiting or receiving income from intellectual property assets.
An “intellectual property asset” is an intellectual property right including a copyright, design right, patent and trademark.
Shipping Business
An entity engages in "shipping business" where it conducts any of the following activities involving the operation of a ship anywhere in the world other than in the territorial waters of the Cayman Islands or between the Cayman Islands:
(a) the business of transporting by sea, passengers or animals, goods or mail for a charge;
(b) the renting or chartering of ships for the purpose described in paragraph (a);
(c) the sale of travel tickets and ancillary ticket related services connected with the operation of a ship;
(d) the use, maintenance or rental of containers, including trailers and other vehicles or equipment for the transport of containers, used for the transport of anything by sea; or
(e) the functioning as a private seafarer recruitment and placement service,
but does not include a holding company business or the owning, operating or chartering of a pleasure yacht.