Cayman Foundation Companies
Full – Stack
A hybrid vehicle. Company in form. Trust in purpose.
A Cayman foundation company sits between a corporation and a trust. It has legal personality, no need for members, and can exist for a purpose rather than for owners. It has quietly become the default home for serious Web3 protocols.
The vehicle
What a foundation company actually is.
in short
A Cayman foundation company is a company limited by shares or by guarantee, registered under the Companies Act, that holds the legal personality of a corporate entity together with the structural flexibility of a trust. It can exist without members, hold assets for a purpose rather than for owners, and operate under a constitution defined by its founder.
This combination is unusual. Most jurisdictions force founders to choose between corporate ownership and trust-style governance. The Cayman foundation company allows both.
Drafted in 2017. Adopted by Web3.
History
The structure was introduced under the Foundation Companies Act, 2017. It was originally drafted for private wealth and philanthropic purposes, an alternative to the Cayman STAR trust for clients who wanted legal personality alongside trust-like flexibility.
Over time it had become the dominant Cayman vehicle for Web3 protocols, governing treasuries, or private wealth management.
The Web3 fit
Why protocols moved in this direction
The problem it solves
A foundation company can operate without shareholders, governed by a board of directors acting in accordance with a stated purpose. That makes it well suited to protocols that need a legal home but do not have, or do not want, equity holders. The director becomes the custodian of the protocol’s purpose.
That last role, independent, qualified director, is what Hash Directors provides.
Full-stack service
Everything a foundation company needs, in one coordinated relationship
What we provide
Most foundation companies need eight or nine distinct service functions to run properly. We provide the directorship, secretary, and registered office in-house, and coordinate the rest through our sister firms. One point of contact for the structure.
One point of contact
The teams sitting alongside us, LemMa, Provenance, eXTreasury, work to the same operational standards and share infrastructure. For the founder, that means one relationship for the structure rather than five.
Questions
Foundation company questions we get most often
Can anyone set up a Cayman foundation company?
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What is the difference between a foundation company and a STAR trust?
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Does a foundation company need members or shareholders?
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Who governs the foundation company?
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How long does incorporation take?
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Is the foundation company tax-resident in Cayman?
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Is a foundation company always the right vehicle for founder wealth?
Not always. Trusts, foundation companies, and hybrid structures each have their place, depending on tax residency, family circumstances, and asset mix. We work through the fit before drafting starts, counsel takes the legal and tax view.
Can the founder still influence decisions?
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How do you handle digital assets inside the structure?
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What is the typical cost?
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