Setting Up a Business in the Cayman Islands

Business structure options

Cayman offers several business structures depending on your needs. The right choice depends on whether you are serving local customers, international clients, or establishing a holding structure.

• No corporate tax on any structure. No capital gains tax. No payroll tax.
• Trade and Business License required for any business operating locally (selling to Cayman customers).
• Exempted companies cannot conduct business within Cayman — they are for international operations only.
• Legal counsel required for company formation. Budget $3,000-$10,000 for setup depending on complexity.

• Application: submitted to the Department of Commerce and Investment. Processing takes 4-8 weeks.
• Fee: starting at CI$600/year. Varies by business type and revenue.
• Required for: retail, restaurants, professional services, construction, any business serving local customers.
• Not required for: exempted companies conducting only international business.
• Local Companies Control Law: businesses majority-owned by non-Caymanians may need additional approval for certain categories.
• Annual renewal required. Late fees apply.

Cayman Enterprise City (Special Economic Zone)

Cayman Enterprise City (CEC) is a Special Economic Zone designed to attract knowledge-based businesses. It offers a streamlined setup process with work permit assistance and zero-tax guarantees.

• Sectors: technology, commodities, maritime, biotech, academic research.
• Benefits: fast-track work permits (2 weeks), zero tax guarantee for 50 years, no import duties on equipment.
• Cost: zone fees start at approximately $18,000/year for a single-person company. Increases with headcount.
• Ideal for: tech startups, consultancies, trading companies, and businesses that serve international clients.
• You can operate from CEC and serve clients worldwide — but not sell directly to Cayman local market.
• Co-working and office space available within the Enterprise City campus.

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Practical setup steps

Setting up a business in Cayman is straightforward with the right professional guidance. Budget 2-4 months from decision to operational.

• Engage a Cayman corporate lawyer for company formation and licensing.
• Open a corporate bank account (same documentation challenges as personal — allow 4-8 weeks).
• Register for any required professional licenses or regulatory approvals.
• Set up payroll if hiring employees. Employer obligations include work permit sponsorship, health insurance, and pension contributions.
• Commercial leases: office space available in George Town, Camana Bay, and the Enterprise City campus.
• Accounting: engage a local accountant for compliance even though there is no corporate tax — annual filings and regulatory requirements exist.

Hiring employees

If your business grows and you need employees, you become responsible for their work permits, health insurance, and pension contributions.

• Work permits: employer applies and pays. Fees vary by role category ($1,000-$3,000+ per year).
• Immigration requirements: you must demonstrate that you tried to hire qualified Caymanians before hiring foreign workers (for most roles).
• Health insurance: mandatory for all employees and their dependants. Employer pays at least 50%.
• Pension: mandatory contributions to an approved pension scheme. Employer contributes 5% of salary, employee contributes 5%.
• Employment law: governed by the Labour Act. Reasonable termination notice, vacation entitlements, and workplace standards apply.
• Payroll: monthly cycle is most common. Paid in CI dollars.