LAWS AND REGULATIONS FOR BUSINESSES IN THE CAYMAN ISLANDS Presented by Sherri A. Bodden, MBE, LIB...

LAWS AND REGULATIONSFOR BUSINESSES IN THE CAYMAN ISLANDSPresented by

Sherri A. Bodden, MBE, LIB (HONS.)Bodden & Bodden Attorneys-At-Law

Addressing Start-Up Ventures

LAWS AND REGULATIONSFOR BUSINESSES IN CAYMAN


Key Topics

What is a Company?

A company incorporated in the Islands

- By virtue of the Companies Law

- Foreign Company registered under the Companies Law

Companies Law, 2004 Revision applies

- Separate legal entity (separate from owners)

- Memorandum of Association

- Articles of Association

- Procedures for Incorporation

Presented by Sherri A. Bodden, MBE, LIB (Hons.) www.dci.gov.ky | t: +1.345.945.0943




Key Topics

Types of Companies

• Ordinary Resident

- Carries on business within the Islands

- May own property in the Cayman Islands

- Holding Company

- Apply for a Trade & Business License




Key Topics

Types of Companies

• Ordinary Non-Resident - Approved as such by the Financial Secretary, who provides a Certificate designating such - Not a company which does, or intends to, carry on business within the Islands

• Exempt - Also cannot carry on business within the Islands - Can benefit, if applies, for exemption from taxes for a period of 20 years, which can be extended to 30 years




Key Topics

Advantages of Incorporating a Company

• Limited Liability

• Asset Protection

• Confidentiality – (owning land)

• Tax Exemption of Exempt Company

• Solomon v Salomon




Key Topics

General Due Diligence Requirements

Due Diligence Requirements vary among Service Providers, but

generally require:

- For all persons / companies involved (Directors, Controlling

(>10%)

Shareholders, Controlling (>10%) Beneficial Owners, and

sometimes

Officers

- Identification

- Residential Address confirmation

- Financial Reference (>3 years)

- Professional Reference




Key Topics

Process of Applying for a T&B License

• Form Company or apply in personal name if Caymanian

• Complete forms and Cover letter to the Trade & Business Licensing

Board

explaining the purpose of the Company

• Complete Due Diligence

• Pay relevant fee

• Process takes about 6 weeks

• Annual Renewal




Key Topics

Caymanian Participation

• Regardless of what exists on paper, if the company is not genuinely

Caymanian

controlled, it is considered to be “Fronting”

- 60% of the voting rights must be exercised by a Caymanian

- 60% of the Board of Directors must be Caymanian




Key Topics

Process of Applying for aLocal Companies (Control) Law Grant

• This is where a Company has obtained a special license under the

Local

companies (Control) Law (Revised) (“LCCL”)

• Must incorporate a Company

• Granted at the Board’s Discretion

• Must advertise for at least two weeks to seek Caymanian

Participation

• Same procedures as for the Trade & Business license




Key Topics

Shareholders Agreements

• Required when a company owns a business and has more than

two shareholders

• Sets out the object of the Company

• Conduct of Companies Affairs

• Classes of Shares and Dividend policies




Key Topics

Work Permit Requirementsfor Non-Caymanians• Any non-Caymanian employed by a local Company or Business must apply to the Work Permit Board for a work permit for the Non-Caymanian

• The Company or Business must have a Trade & Business License or LCCL




Key Topics

Labour Law

• Every employee within 10 days of employment must have a Statement

of

Working Conditions which shall state the following:-

• Job title / Responsibilities

• Hours of work

• Salary / pay period

• Period of Employment / Probationary Period

• Holiday / Sick Leave / Other benefits

• Notice required to terminate contract




Key Topics

Related Fees

• Legal Fees

• Registered Office Fees

• Government Fees for Company

• Trade & Business Licensing Fees

• LCCL Fees

• Work Permit Fees




Key Topics

Legal Structure

• Sole Proprietorship

- Flexibility, profits vs. unlimited liability, lack of continuity

• Partnership

- More experience vs. tied to partners

• Corporation

- Limited liability, unlimited life, transfer of ownership vs. more

regulated,

costly to organize




Key Topics

Licensing Requirements

• All businesses and professionals operating in the Cayman Islands must

be

licensed under the law relevant to their industry.

• Regulators:

- Trade and Business Licensing Board

- Cayman Islands Monetary Authority

- Hotel Licensing Board

- Information and Communications Technology Authority




Key Topics

Employment Regulations

• Working Conditions

- Department of Employment Relations

• Health Insurance

- Health Insurance Commission

• Pensions

- National Pensions Office

• Work Permits

- Immigration Department

- Work Permit Board &

- Business Staffing Plan Board




Key Topics

Protecting Your Business Ideas

• You should freely circulate your executive summary or PowerPoint

slides

• Perform your own due diligence on investors

• Limit disclosure of sensitive information

• Use a non-disclosure / non-circumvent agreement

• Registering intellectual property




Key Topics


Trade Secrets are recipes, designs, processes, etc. that are kept secret

to protect them from public knowledge

A patent for an invention is the grant of a property right to the inventor

to exclude others from making, using, offering for sale, selling or

importing the invention




Key Topics


A trademark is a word, name, symbol, or device that is used in trade

with

goods to indicate the source of the goods and to distinguish them from

the

goods of others

Copyright is a form of protection provided to the authors of “original

works of authorship” including literary, dramatic, musical, artistic, and

certain other

intellectual works, both published and unpublished.




Closing

Further InformationSherri A. BoddenAttorney at Law and Partner of the Firm Bodden & Bodden

Contact information:[email protected]

mailto:[email protected]

Date post:	16-Dec-2015
Category:	Documents
Upload:	gerard-davis
View:	252 times
Download:	1 times

LAWS AND REGULATIONS FOR BUSINESSES IN THE CAYMAN ISLANDS Presented by Sherri A. Bodden, MBE, LIB...

Documents