Cayman Business Licensing Reforms

The Cayman Islands has implemented targeted changes to its business licensing framework, including multi-year Trade and Business Licences for eligible Caymanian-owned and operated businesses and revised fee categories under the Trade and Business Licensing Act (2026 Revision) and the Local Companies (Control) regime.

The Trade and Business Licensing (Amendment of Schedule 1) Regulations, 2026 and the Local Companies (Control) (Fees) (Amendment) Regulations, 2026 each came into force on 28 April 2026. The reforms should be read within the statutory scope of the Trade and Business Licensing Act: a licence is required where a person carries on a trade or business in or from within the Cayman Islands, unless the Act does not apply or another statutory regime is engaged. They do not mean that every exempted company, international entity, asset manager or developer requires a Trade and Business Licence irrespective of its activities and status.

Multi-Year Licences for Eligible Caymanian Businesses

From 28 April 2026, qualifying Caymanian-owned and operated businesses may apply, through the Department of Commerce and Investment (DCI), for multi-year Trade and Business Licences (TBLs) valid for up to five years. The published eligibility criteria include that the business must:

• Be considered “low risk” by the Trade and Business Licensing Board.
• Be locally owned and operated, as defined by section 18 of the Act, and demonstrate a history of compliance with relevant Acts and Regulations.
• Have no outstanding fines or breaches relating to previous licences.

Fee Changes and Practical Transition Points

As the 2026 amendments are now in force, affected businesses should review whether they are within scope, identify the correct licensing category and budget for any applicable fee changes. The Schedule 1 amendments include revised professional categories for accountants, audit firms, accounting service providers and insolvency firms, with fees that depend on the nature of the service provider and, for firms, the number of accountants and other professionals. They also include revised Trade and Business Licence fees for property developers and real estate agencies or agents, including categories linked to licences granted under the Local Companies (Control) Act, and a separate CI$12,500 (approximately US$15,000) category for exempted companies. The Local Companies (Control) fee amendments set CI$12,500 (approximately US$15,000) as the general licence and annual licence fee, with CI$50,000 (approximately US$60,000) for real estate businesses and CI$100,000 (approximately US$120,000) for property development businesses. Multi-year licence applicants should also plan for payment of the annual application licence fees for the full licence period at the point of application or renewal.

Proposed Moratorium Power for Non-Caymanian-Owned Businesses

Since the fee reforms came into force, the Government has published the Local Companies (Control) (Amendment) Bill, 2026 (published with Legislation Gazette No. 32 dated 28 May 2026), which introduces a new regime for how it will manage the grant of licences for companies that trade in the Cayman Islands but are owned by non-Caymanians. The Bill inserts a new section 11A into the Local Companies (Control) Act, empowering Cabinet, by Order, to implement a moratorium on the grant of licences generally or in respect of any business of any kind or type where it is in the public interest to do so. Any such Order must set out the commencement and expiration dates of the moratorium and the kind or type of business to which it applies, and while a moratorium is in force the Board may not grant the relevant category of licence. Applications awaiting a decision immediately before a moratorium commences would continue to be processed as if the restriction had not been imposed, and any exemption from a moratorium would require a separate Cabinet Order made after consultation with the Board. The Government has indicated that the measure is intended to give local entrepreneurs the opportunity to start new businesses in areas previously held by expatriates, with a particular focus on the real estate and property development sector, though the drafted power extends to any trade or business category. As at the date of this note, the Bill has been published but has not yet been enacted or brought into force. Non-Caymanian-owned businesses that anticipate applying for or renewing a Local Companies (Control) Licence should monitor the Bill’s progress, as a moratorium could affect the availability of new licences in targeted sectors.

Practical Considerations

1. Assess multi-year eligibility: Caymanian-owned and operated businesses should assess whether they satisfy the low-risk, local ownership and compliance criteria for a licence period of up to five years.
2. Confirm scope before budgeting: exempted companies, international entities, asset managers and developers should first determine whether their Cayman Islands activities amount to carrying on a trade or business in or from within the Cayman Islands, whether an exemption applies or whether another approval is required, and then budget for any applicable Schedule 1 or Local Companies (Control) fees.
3. Review professional and sector classifications: accounting, audit, insolvency, real estate and property development businesses should confirm the correct category, headcount or ownership basis for the applicable fee before filing or renewing, and should continue to meet annual reporting, renewal and change notification requirements during any multi-year licence period.
4. Diarise renewal and reporting deadlines: renewal applications must be submitted 90 days before the current licence expires and incomplete applications can result in penalties or revocation. Annual returns and all other relevant documents must be submitted by 31 January. Small business owners applying for Trade and Business Licences may also submit an application for discounts under the Small Business Incentive Programme.

Originally published on 14 August 2026.

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.