HSM

HSM Corporate Services

29/09/2021 | hsmoffice

Timing Considerations for Year-end Company Dissolutions

As we draw closer to the end of 2021, many clients will be considering their Cayman Islands company structures and querying whether any entities are surplus to requirements. The desire to wind up any Cayman entities before the end of Read more +

26/07/2021 | hsmoffice

HSM Produces Updates to the Cayman Islands Economic Substance Regime

Most clients are now relatively familiar with the Cayman Islands Economic Substance regime requiring real economic substance for certain entities (known and ‘Relevant Entities’) carrying or certain activities (known as ‘Relevant Activities’). Our firm’s previous article on the introduction of Read more +

26/05/2020 | hsmoffice

Fee Concessions for Small and Micro Businesses in the Cayman Islands

The Trade & Business Licensing (Amendment of Schedule) Regulations, 2020 (the “Amendment Schedule”) has been gazetted as of 1 May 2020. Whilst earlier amendments to the Cayman Islands Trade & Business Licencing (“TBL”) regime got much coverage in the local Read more +

23/03/2020 | hsmoffice

Cayman Set to Introduce New Virtual Asset Legislation

Further to the Cayman Islands Governments’ recent changes to the Anti Money Laundering (AML)/Combatting the Financing of Terrorism (CFT) regime to include virtual asset services as “relevant financial business” the jurisdiction is now set to implement a registration and licensing Read more +

Fee Concessions for Small and Micro Businesses in the Cayman Islands

The Trade & Business Licensing (Amendment of Schedule) Regulations, 2020 (the “Amendment Schedule”) has been gazetted as of 1 May 2020.

Whilst earlier amendments to the Cayman Islands Trade & Business Licencing (“TBL”) regime got much coverage in the local press those earlier amendments merely deferred the CI$75.00 application fee for a short period. Whilst a temporary CI$75.00 savings should not be discounted as many local businesses are struggling during these times the Amendment Schedule provides much greater reprieve for local small and micro businesses.

In all cases Micro Businesses will have the TBL fees reduced by 100% and with the application fee deferral mentioned above this will mean that a Micro Business will not have to pay anything on application or renewal initially.

Important changes to note:

  • The Amendment Schedule will expire on 31 December 2021.
  • Small Businesses[1] and Micro Businesses[2] that are independently owned and operated; are for profit and have close control over operations with decisions taken by the owner will see temporary reductions in TBL fees (as outlined below).
  • Auditing service firms, financial service firms (other than insurance agents) and exempted companies which fit the definition of Micro Business or Small Business are excluded from the fee reductions.
  • Mobile Businesses[3] which fit the definition of Micro Business or Small Business will be eligible for the TBL fee reductions but the location of the mobile business will be determined by the block & parcel number on the TBL/application form.
Location of trade
of business
Percentage reduction
on fee
George Town Micro Business 100%
Small Business 50%
West Bay Micro Business 100%
Small Business 50%
East End Micro Business 100%
Small Business 75%
North Side Micro Business 100%
Small Business 75%
Bodden Town Micro Business 100%
Small Business 75%
Little Cayman Micro Business 100%
Small Business 50%
Cayman Brac Micro Business 100%
Small Business 50%

 
HSM can assist with all TBL applications and renewals and can provide the necessary advice as to whether you qualify under the Small/Micro business incentive programme as well as updating the TBL Board should there be any change to the revenue of the business, number of employees and ownership of any business benefitting from the reduced fees.

Footnotes
[1] ‘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.

[2]  ‘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.

[3] “Mobile Business” is a business that is not operated from a fixed location but from a pedal cycle, motor cycle, motor car or other motor vehicle.

Key Contact

Peter de Vere
Head of Corporate and Commercial
Tel: 1 345 815 7360
pdevere@hsmoffice.com