Considering redomiciling your captive?
Derek Lloyd looks at the factors you need to consider when evaluating whether or not to redomicile your captive, and the practicalities involved if you decide to proceed further.
Redomiciliation of a captive, or continuance as it is called in certain
jurisdictions, is the movement of a captive from one domicile to another while maintaining the same legal entity.
Contrary to some opinions expressed in certain quarters of the captive industry, there is no particular trend for the movement of existing captives from offshore to onshore, onshore to offshore or any permutation thereof, but it is true to say that there is an increased movement or redomiciliation of captives at the present time, and this has arisen due to a combination of factors.
In recent years, the expansion of the domestic market in the US has certainly provided captive owners with an increased choice of where to domicile their captive, existing or new, alongside the traditional international finance centres in Bermuda, the Cayman Islands, the British Virgin Islands and other similar jurisdictions.
External political pressures and the recent economic meltdown
have also caused many captive insurance companies to re-evaluate their original choice of domicile, as the factors that existed some years ago when a particular jurisdiction was chosen may no longer be relevant today.
30 US Captive . April 2010
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