Micro & Small Business Incentives
The cost of trade and business licensing fees has been significantly reduced for micro- and small-business owners, under Government's commerce incentives for 2016/2017.The reductions came into effect on 31 August 2016, and will run until 31 December 2017. ‘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. Micro-business owners, across Grand Cayman, Cayman Brac and Little Cayman, may apply for a 100% reduction in licensing fees for the 2016/2017 year.
‘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. Small-business owners with operations in West Bay and George Town can receive a 50% reduction in licensing fees; and in Bodden Town, North Side and East End, a 75% reduction is available during 2016/2017. For the Sister Islands, the 50% reduction for small-business owners is in addition to the 50% reduction in fees that already is in place in the Law. Therefore small-business owners in Cayman Brac and Little Cayman will benefit from a total 75% reduction in fees in 2016/2017.
In addition to meeting the definition for micro or small business, to qualify for the incentive programme business owners must provid all the required documents for a regular Trade & Business License and in addition:
- Business Overview Form (Grants only)
- Obtain a Certificate of Compliance from Pension Provider. (Renewals only)
- Obtain a Certificate of Compliance from Health Provider, (Grants & Renewals)
- All businesses must obtain a Trade and Business licence before commencing their operations
- Regardless of the reduction in fees, all micro- or small-business owners must obtain a Trade and Business licence before commencing operations, and pay the CI$75 non-refundable processing fee for their licence application. Anyone who does not first obtain a licence before engaging in trade and business will be in contravention of the Trade and Business Licensing Law.
The Trade and Business Licensing Board must be informed of any changes to the business that would alter the owner’s eligibility for the incentive. Such changes include an increase or decrease in the number of employees, change of business location, or a change in annual gross revenue. Failure to inform the board may result in disqualification from the programme. Auditing services, and financial services firms are not covered by this incentive programme. Business owners who are interested in this incentive are encouraged to read further details of this incentive programme in the Trade and Business Licensing (Amendment of Schedule) Order, 2016, which is available on www.dci.gov.ky.