According to a recent notice in the Cayman Islands Gazette, amendments were made to the Local Companies (Control) Act to give the Cabinet the power to make regulations to set prescribed fees for companies which have a local companies control licence (i.e., companies which have special permission to do business locally without the need for Caymanian control or Caymanian directors or shareholders).
Application Fees
Before the change, local companies control licence applications had to be accompanied by a processing fee of $200 and a licence fee of $2,500, together with the company’s constitutional documentation and a statement of the nature of its business.
The processing and licence fees are now set out in the table below, extracted from the Local Companies (Control) (Fees) Regulations, 2024.
Annual Fees
Prior to the change, entities granted local companies control licences were required to pay a fee of $2,500 on or before the anniversary date of the grant of the initial licence and on or before that date every year thereafter during the subsistence of that licence.
The annual licence fees are now set out in the table below, extracted from the Local Companies (Control) (Fees) Regulations, 2024.
More about the Local Companies (Control) Act
Generally speaking, to carry on business as a local company, a company must be Caymanian-controlled, have at least 60% of its shares beneficially owned by Caymanians and have at least 60% of its directors as Caymanians.
However, these rules may be bypassed if certain conditions are met.
These rules are set out in the Local Companies (Control) Act.
