• 2006 Update to Doing Business in China via the Cayman Islands
  • April 14, 2006
  • Law Firm: Fenwick & West LLP - Mountain View Office
  • Many companies doing business in China are using a structure which includes a company formed under the laws of the Cayman Islands ("CI"). Chinese technology and internet companies listed on Nasdaq such as Actions Semiconductor, Baidu, CTrip, China Medical Technologies, Focus Media, Shanda, Suntech Power and Tom Online are actually CI companies. The primary business reasons for an offshore structure are flexibility in an exit strategy, whether in connection with an initial public offering ("IPO") or an acquisition; the possibility of reducing U.S. taxes; and reducing the impact of China's currency exchange restrictions.