Most Read Contributor in Cayman Islands, September 2016
The cost of trade and business licensing fees will be
significantly reduced for micro- and small-business owners, under
Government's commerce incentives for 2014/2015.
Announced during the 2014 Budget Debate, the reductions will
come into effect on 31 August, for a one-year period.
Noting that micro- and small-business owners have been in need
of support through incentives for some time, Minister of Commerce
Wayne Panton said the reduction in licensing fees is intended to
'Micro and small businesses are the backbone of our domestic
economy and we aim to support them in a variety of ways to enable
their survival, growth and the creation of more jobs', he
'Furthermore, Government encourages persons with viable
business ideas to consider entering the marketplace and to that
end, they are encouraged to discuss their business plans with staff
in the Department of Commerce and Investment, who will help them to
establish their ventures on solid ground'.
'Micro businesses' are those that, among other
conditions, employ up to four employees (excluding the owner), and
have an annual gross revenue not exceeding CI$250,000 in the
preceding fiscal year. Micro-business owners, across Grand Cayman,
Cayman Brac and Little Cayman, may apply for a 100% reduction in
licensing fees for the 2014/2015 year.
'Small businesses' are those that, among other
conditions, employ up to 12 employees (excluding the owner), and
have an annual gross revenue not exceeding CI$750,000 in the
preceding fiscal year.
Small-business owners with operations in West Bay and George
Town can receive a 50% reduction in licensing fees; and in Bodden
Town, North Side and East End, a 75% reduction is available during
Minister Panton said that for the Sister Islands, the 50%
reduction for small-business owners is in addition to the 50%
reduction in fees that already is in place in the Law. 'What
this means is that small-business owners in Cayman Brac and Little
Cayman will benefit from a total 75% reduction in fees in
2014/2015', he explained.
In addition to meeting the definition for micro or small
business, to qualify for the incentive programme business owners
Obtain a certificate of good standing from the National
Provide health insurance information, including:
the name of the business's approved health insurer, with
the policy identification number and the effective start date of
a listing of all employees, and their dependents;
the last bill payment made to the approved insurer;
a statement from the approved insurer confirming that there
were no breaks (lapse policy) over the past 12 months; and
a statement from the business owner, verifying that the
information provided is in agreement with the company's
Obtain a Trade and Business licence before commencing their
Regardless of the reduction in fees, all micro- or
small-business owners must obtain a Trade and Business licence
before commencing operations, and pay the CI$75 non-refundable
processing fee for their licence application. Anyone who does not
first obtain a licence before engaging in trade and business will
be in contravention of the Trade and Business Licensing Law.
The Trade and Business Licensing Board must be informed of any
changes to the business that would alter the owner's
eligibility for the incentive. Such changes include an increase or
decrease in the number of employees, change of business location,
or a change in annual gross revenue. Failure to inform the board
may result in disqualification from the programme.
Auditing services, and financial services firms are not covered
by this incentive programme.
Business owners who are interested in this incentive are
encouraged to read further details of this incentive programme in
the Trade and Business Licensing (Amendment of Schedule) Order,
2014, which is available on www.dci.gov.ky.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
Virtual currency trading value and volume is soaring globally, but regulating virtual currencies and those who provide virtual currency exchange services (Exchangers) is challenging.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).