Below is a general outline of this process.
Businesses in the Cayman Islands are usually established by an individual, a company, or a partnership:
Company
The registration of companies is governed by the Companies Law (2004 Revision), and all companies must be registered with the Registrar of Companies. Companies can be formed with one shareholder and with no minimum capitalisation requirements (except for Exempted Limited Duration Companies).
Client privacy is protected by the fact that the Registrar can only release the name and type of company, its date of registration, the address of the registered office and the company's status. Disclosing any other information is prohibited except where assistance to law enforcement agencies is required.
Businesses that intend to operate in the jurisdiction are typically incorporated as a 'Resident Company'. Resident Companies are companies carrying on business in the Cayman Islands, which must report annually to the Registrar and which can hold land. As an alternative, companies that are incorporated outside of the Cayman Islands that wish to carry on business locally can register as a 'Foreign Company'.
Click here for details on the ways in which a company may be registered in the Cayman Islands.
Partnership
Limited partnerships, which can be formed by two or more people or companies, are governed by the Partnership Law (2002 Revision), which requires them to be registered with the Registrar of Limited Partnerships.
Click here for details on registering a limited partnership in the Cayman Islands.
All businesses and professionals operating in the Cayman Islands must be licensed under the law relevant to their industry.
General Business Licences
Trade and Business Licences are administered through the Trade and Business Licensing Board of the Immigration Department as specified under the Trade and Business Licensing Law (2003 Revision). The fees for licence application and annual renewal depend on the broad nature of the business and/or profession. Certain types of business premises, such as restaurants, also require inspection by the Department of Environmental Health.
In addition, foreign-owned or controlled companies doing business in the Cayman Islands must obtain a licence under the Local Companies (Control) Law (1999 Revision). A company is considered foreign owned if less than 60 per cent of the equity is owned by Caymanians or if less than 60 per cent of the board of directors is Caymanian. This licence has a maximum duration of 12 years, but a longer period may be approved by the Governor.
For more details, please visit the Immigration Department website.
Financial Services Licences
Companies operating in the financial services industry must apply for the license relevant to its industry from the Cayman Islands Monetary Authority (CIMA). CIMA is responsible for processing applications, regulation and supervision of the following types of businesses:
* Banks and Trust Companies
* Insurance Companies
* Fiduciary Services (Companies Management, Corporate Services, Trust Companies in of companies without a banking licence)
* Investment & Securities Services (Mutual Funds, Mutual Fund Administrators, Securities Investments Businesses)
For more details, please visit the Cayman Islands Monetary Authority website.
Hotel Licences
Hotels seeking to operate in the Cayman Islands must apply for a hotel licence from the Hotel Licensing Board under the Tourism Law (1995 Revision). This process is administered through the Department of Tourism.
A Trade and Business Licence is not required, but a LCCL is required if the level of Caymanian participation does not meet the threshold stated in law.
Telecommunications and Radio Licences
The Information and Communications Technology Authority (ICTA) is an independent statutory Authority which is responsible for the regulation and licensing of Telecommunications, Broadcasting, and all forms of radio which includes ship, aircraft, mobile and amateur radio. The ICTA conducts the administration and management of the .ky domain, and also has a number of responsibilities under the Electronic Transactions Law 2000.
A Trade and Business Licence is not required for a business licensed by the ICTA, but a Local Companies (Control) Licence is required if the level of Caymanian participation does not meet the threshold stated in law.
For more details, please visit the Information and Communications Technology Authority website.
Applications for permission to carry out development must be made to the Planning Department in accordance with land uses indicated in the Development and Planning Law (2003 Revision), Development and Planning Regulations (2003 Revision), and the Cayman Islands Development Plan.
Applications for planning permission to carry out development must be made to the Central Planning Authority (CPA) in Grand Cayman and the Development Control Board (DCB) in the Sister Islands. Land uses (zoning) are indicated by The Development Plan. Planning permission is required even for an established location where the intended use of the location is significantly different from what was originally approved.
A building permit is required prior to start of construction and a Certificate of Occupancy is required before buildings can be occupied. In certain limited circumstances, home offices are permitted subject to conditions restricting and limiting the scope of activities within the designated address. Applicants are advised to consult the Planning Department for advice on registering a business at a private residence.
All major developments must go to the Central Planning Authority (CPA) for approval. The CPA may require an Environmental Impact Assessment depending on the project (type and size) and its impacts. Advice on the environmental impact of development projects is taken from the Department of Environment. The Department of Environment encourages pre-application consultation with project proponents to discuss areas of environmental concern or mitigating impacts through best management practices and other internationally accepted mechanisms.
For more details, please visit the Planning Department website.
Non-Caymanians or people not legally and not ordinarily resident in the Cayman Islands aren not allowed to work in the Cayman Islands without a work permit.
Under the Immigration Law (2003), a person or his/her employer may apply for a work permit to the Work Permit Board or the Business Staffing Plan Board for employment in Grand Cayman, or to the Cayman Brac and Little Cayman Immigration Board for employment in the Sister Islands.
In Grand Cayman, all businesses employing fifteen or more work permit holders must submit their work permit application through the Business Staffing Plan Board as opposed to the Work Permit Board. Businesses employing fewer than fifteen work permit holders have the option of applying to either of these boards.
The boards may grant work permits for up to three years. Five-year permits can also be granted to holders of certain positions that have been approved under a business-staffing plan. A work permit holder can work continuously for no more than seven years. After this, the board can’t normally grant any further work permits until that person has left the Islands for at least two years. The only exceptions to this would be a worker designated an ‘exempted employee’ in a business staffing plan, or where there are exceptional circumstances. In such cases, the board may, at its discretion, grant additional work permits to enable the person to complete an aggregate period of eight years, thus making him or her eligible to apply for the status of permanent residence.
For more details, please visit the Immigration Department website.
Terms of Employment
Under the Labour Law (2001 Revision), every employer who enters into a contract of employment with an employee shall within ten working days of entering into such contract, furnish the employee with a written statement of his conditions of employment. This statement covers, amongst other things, job title, responsibilities, special requirements, regular working hours, rate of remuneration, and period of employment if any.
Labour Tribunals have been established under the Law for the purpose of hearing complaints from employers and employees, though provision has also been made for the complaints to first go through a Conciliation and Mediation process. In the event that this process fails to resolve the situation it is then referred to the Labour Tribunal. For more information, please visit the Department of Employment Relations website.
There is currently no National Minimum Wage in the Cayman Islands.
Under the Health Insurance Law (2003 Revision), an employer must pay the standard premium of any standard health insurance contract issued by an approved insurer. Up to 50 per cent of this premium can be recovered directly or deducted from the employee's salary. Health insurance coverage is also required for an employee within the first fifteen days of employment. For more details, please visit the Health Insurance Commission website.
Under the National Pensions Law (2000 Revision), employers don’t have to provide pension plans or contribute to pension plans for employees who do not have Caymanian status, or who are not permanent residents in the Cayman Islands during the first nine months of their employment.
Employers are responsible for providing a pension plan for eligible employees, and for maintaining current information with the National Pensions Office. For more details, please visit the National Pensions Office website.
Can I work while I’m visiting the Cayman Islands?
A casual visitor is not permitted to take up or solicit employment while in the Islands. A work permit must be applied for and obtained before arrival, either by the individual, if he is to be self-employed, or by the employer with a post to fill. A work permit entitles the holder and named dependents (normally limited to three) to live in the Islands during the term of the license or specific employment. Dependents will not be allowed to work without their own licenses.
If you're planning a business trip, know in advance that sales people planning to solicit business and take orders in our islands require a temporary work permit. Applications for this may be obtained in advance from the Department of Immigration. Contact their office weekdays between 9 a.m. and 4 p.m. at (345) 949-8344. You also must declare all samples of goods you're bringing into the country and these must leave with you.
Under Immigration Laws visitors are not allowed to accept jobs in the Cayman Islands without a government-issued work permit.
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