Generally speaking, a company must obtain a trade and business licence, be Caymanian controlled, have at least sixty per cent of its shares be beneficially owned by Caymanians and have at least sixty per cent of its directors as Caymanians in order for that company to do business locally. However, there is a way to avoid these requirements. In fact, procedures for doing so have been set out in the Local Companies (Control) Act (LCCL Act) for many years, notwithstanding that some people may not be aware.
For a non-Caymanian to obtain 100% ownership of a local business, the first step is to submit an application to the Trade and Business Licensing Board (the “Board”), along with a processing fee of two hundred dollars, a licence fee of two thousand five hundred dollars and company documentation, including a statement setting out the nature of the business the company is carrying on and proposes to carry on.
In considering the application, the Board must have regard to certain matters before it grants a licence for 100% non-Caymanian ownership of a local business. These matters include:
- the economic situation of the Cayman Islands
- need for protection of persons already engaged in business in the Cayman Islands
- the nature and previous conduct of the company and the persons having an interest in that company whether as directors, shareholders or otherwise
- the advantage or disadvantage which may result from that company carrying on business in the Cayman Islands
- the...
Read Full Story: https://cayman.loopnews.com/content/laws-provide-100-non-caymanian-ownership-local-businesses
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