![]() ![]() ![]() In April 2017, Cayman enacted legislation for the formation and registration of Foundation Companies. Therefore, although they would require a T&B Licence to set up their local office and secure work permits for any expatriate employees (as discussed further in the Immigration chapter), they would not require a LCCL, or 60% ownership by a Caymanian Status holder. The grant of an LCCL is a matter of discretion for the Trade & Business Licensing Board which will carefully consider, amongst other things, the benefit such business will bring to the Islands, the extent to which Caymanian participation has been sought (which will ordinarily include a requirement for public advertising) and whether the proposed business will compete with local Caymanian-owned businesses.īusinesses wishing to set up a physical presence in the Cayman Islands, whose activities are carried out mainly outside the Islands, are in most cases exempt from the Local Companies Control Law (LCCL). Where beneficial ownership and control is less than 60% by Caymanians, a Local Companies Control Law Licence (LCCL) may be required. More details on the Local Licences procedure is given later in this section.įor a business, wholly or at least 60% beneficially owned and controlled by one or more Caymanians, the acquisition of a Trade and Business (T&B) Licence is required. If your aim is to operate a business on-Island, then depending on the nature of the ‘on-Island’ business to be conducted, some other form of local licensing will be needed. The process to register a branch with the Cayman Registrar of Companies is straightforward and the branch, once registered, is required to maintain a local registered agent and pay annual fees to the Cayman Islands Government to maintain its registration. There are more formalities and fees associated with forming and operating a company, than with a partnership or sole trader business, but many people feel the limited liability a company affords is worth the extra effort and cost.įoreign businesses that do not wish to establish a Cayman Islands subsidiary, do have the option of registering a branch operation in Cayman. Companies are very commonly used for all sorts of businesses, from one-man operations to multi-million dollar, multinational businesses. However, the sole trader is personally responsible for any debts the business incurs.Ī company will be used where the owners and operators of the business want to have limited liability for the debts of the business. There are few formalities for formation and few annual fees. Typically, small owner-operated businesses with few liabilities, might consider operating as a sole trader, often using a ‘trading as’ title such as Fred Smith (t.a. The differences in, and suitability of, various types of business structure are highly technical and are best discussed with a qualified Cayman Islands attorney. The main distinction is that sole traders and general partners have unlimited liability to third parties doing business with them, whereas the shareholders of a company typically have limited liability to third parties doing business with the company. ![]()
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