Economic Substance Compliance Without Confusion
We help you navigate economic substance compliance in Cayman—filings, tests, rules, and real-world support without the usual legal confusion.
What Is Economic Substance Compliance?
Economic substance compliance means proving your Cayman-based entity is doing real business activity on the island—not just existing on paper.
Under the Economic Substance Act, certain types of companies must meet local activity requirements. If you're doing fund management, holding assets, or running a finance company, you may need to prove:
You’re managed and directed from Cayman
You have adequate people and premises here
You’re spending enough on core business activities
Who Needs to File for Economic Substance?
If your Cayman entity is engaged in a relevant activity, you likely fall under the Economic Substance Test. This includes:
- Fund management and investment services
- Banking, insurance, and finance-related businesses
- Intellectual property companies and holding companies
Even if your business is passive, it may still need to comply or submit a zero-return. Don’t guess—let’s confirm your status with clarity.
Ready to Strengthen Your Fund with Outsourced Expertise?
With our Grand Cayman risk management service, your fund will be better protected, more organized, and fully supported by local experts.
Reach out today for a free consultation.
We’re here to help—no stress, just straightforward advice.
Why Choose Artemis for Economic Substance Compliance?
At Artemis, we focus on giving you peace of mind—not paperwork stress.
Clear advice, no jargon
We explain your obligations in plain English.
Local knowledge, global insight
We work closely with Cayman’s regulators and understand how your global structure fits in.
Proactive support
We don’t just react; we keep you ahead of every deadline.
Custom-fit solutions
Whether you’re a single holding company or a multi-entity structure, we tailor your economic substance compliance needs.
Our Economic Substance Services
We make compliance easy by offering full-service support:
Confirming if your entity is in scope
Filing annual economic substance filings in Cayman
Preparing and submitting the Economic Substance Test report
Giving plain-English economic substance guidance
Managing reporting to DITC and other authorities
Helping you set up substance-ready operations if needed
We stay ahead of rule changes so you don’t have to.
Frequently Asked Questions
It checks if your Cayman company has real business operations, people, and control in the Islands—based on local regulatory rules.
You may face fines, be reported to foreign tax authorities, lose good standing, or even be struck off the Cayman company register.
If your entity is in scope, yes—you’ll need real local presence, staff, or directors actively involved in decision-making and operations.
Yes, we manage the full compliance cycle—from testing scope to preparing and filing reports—while keeping you informed every step.
Tax returns report income and expenses. Economic substance compliance shows you have genuine business activities in Cayman under current law.
