Cabinet approves hike in local company fees
(CNS): Following an extensive consultation process with businesses, associations and government entities, the cost of a local companies control licence and processing fees have been revised via regulations approved by Cabinet and not in the actual law, according to a release from the Ministry of Financial Services. The fees have not been increased for 17 years, the ministry said.
The decision to increase fees through the regulations means that the Cabinet can increase or even decrease fees without the approval of parliament in the future.
The ministry said that in February 2024, Parliament passed amendments to the Local Companies (Control) Act (2019 Revision) to facilitate the regulations. These were “in keeping with the Cayman Islands’ modern legislative convention to include fees in regulations rather than in Acts, which allows more efficient adjustments for policy, operational, budgetary or market forces as necessary.”
The amended regulations, published on Wednesday, contain the revised fees for processing, grants and renewals of local companies control licences. The ministry said that the additional revenue would help cover the increased administrative costs for service delivery and fund government programmes and initiatives.
“I thank all stakeholders who took the time to give feedback during this process,” said Financial Services Minister André Ebanks, who added that the ministry will incorporate the feedback into its commerce framework reform project. That project is focused on enhancing efficiency and effectiveness and continuing to foster a business-enabling environment. Further consultations on commerce reform will be held throughout this year.
The fees for an ordinary license have increased from $200 to $500, but some fees have been increased significantly, such as those for bulk fuel installation businesses, which have increased tenfold, from $2,500 to $25,000.
See the full list of revised fees below:
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Category: Business, Financial Services
I’m a young Caymanian that works full time but have an honest side hustle on the side selling a few items here and there over the years. It helps a lot with my bills.
I really can’t bother with the paperwork, paying these increased fees and don’t intend to.. born and raised here, just me running the business, and it’s pocket change in comparison to retail stores.
If you are Caymanian then a local companies control licence is not required. However, if you require a trade and business licence, you should apply for one to be granted.
At $100 for a t&b lets do some tissue math
I move maybe $5000 of LEGAL product yearly. Gross profit not cosidering my labour $2000. Get the tb for $100.
I pay 5% of my profit to operate as a born Caymanian..
AFTER I already paid shipping, customs fees including warehouse fees and automatic duty of ** 22% **?! Na brudda, small men like me need to eat too. Unna can come for me and write the ticket for the few imported items I sell to keep afloat.
All that work for $167 a month (not considering your labour)…Need a better side hustle brudda.
Given that these fee hikes only relate to Local Companies Control Licences, which are required when a company is not Caymanian owned and controlled but is allowed to do business in the domestic economy, there is no issue increase in fees at all.
Local Companies (Control) Act is not being used for the purposes that it should be and, if anyone who is not Caymanian is to get the benefit of such licenses, then paying more is a positive thing, especially for the public purse.
What should be happening is that less of these licenses should be granted and DCI enforcement should do their job properly to ensure those who breach the Local Companies (Control) Act and the Trade and Business Licensing Act are prosecuted (as required by the FAFT recommendations for AML provisions).
Banks already charging customers to use ATM’s, use their debit cards for transactions, monthly “compliance fees”, monthly “govt stamp duty fees” and we hear nothing from the government. We are literally paying the banks to do business. They already dont give us anything in interest on savings account yet mortgage rates are through the roof! WHAT IN THE Fizzle is going on in Cayman. Does the elected arm not car AT ALL for its own folks. At this stage im ready to vote for foreginers come this election.
Businesses are so highly taxed already that nobody is going to be able to absorb this. Every penny will be passed on to consumers.
I’m sure they can afford it if they ever review executive compensation.
Did a CEO bot write this?
If the salaries for the 19 members of the circus parliament were reduced by a significant percentage there would be savings. The Government is missing the fiscal prudence when Marco Archer was Finance Minister.
Query why they even have this type of law where licences are granted in so many sectors at this point? You see the full tilt of foreign participants jumping in so many business sectors which is not good for the local economy, Caymanians starting a business etc. Good for gov revenues in the short terms- yes, but drives inflation and pushes development in some areas where the island is not ready for. They should look at restricting this to crucial sectors where you may need foreign investment but not a free for all.
This shambles of a government need more revenue streams
They have recently decimated the development industry so in 3-4 years time there will be much reduced stamp duty revenue( which will be inherited by the next government )
Plus they have to keep pumping money into the over inflated under performing civil service
Thank god for the private sector
That’s a massive fee increase. Some small companies will just close down. Leaving us with less competition and higher prices.
Raising a fee from $2,500 to $12,500 over 17 years means an annualized inflation rate of 9.4%. Good look going to the supermarket to buy food…
Sign of desperation from the UPM ofr they getting ready for a huge expense before they leave office.
Did this guy rub his beads before making the statement to raise fees? Why did the premier and her entourage have to travel to Canada to look at education trends? She has a dam mess here that in her years of experience has created. She just loves to spend the taxpayers money.
Supermarket doesn’t require a local companies control licences to operate so this has zero impact on them
What do you expect as this government loves to spend the money so they have to get it somewhere so just keep hitting the stupid taxpayer. PPM needs to be back in power right away!
This govt … SMH
Do something about it.
HOW? There’s literally nobody worthwhile to elect. People on the inside are fighting hard to stay at the trough.
Say what!!!!
Watch prices increase …
Need to increase vehicles Drivers license fees. imagine up to group 3 license cost about 175 $ for 10 years, yes ten years, should be at least 120 $ per year, that’s only 10 $ per month
A staffed Traffic Department, that was ordered to show up, could raise hundreds of millions in legit fine revenue without any other fee hikes, and it would make the whole community safer and more productive.
Thankfully fees remain the same for people “just doin a ting”.
…with reserves for the powder to fuel them on 2 or 3 tings a day.
This is why we need to shift to income tax. When businesses fees are increased, the consumers pays and there are no difference from the guy that is paid $1 million per year than the guy at the grocery store buying a bottle of milk. How is this fair?
Yes lets get rid of the entire reason people live on this rock in the 21st century.
No, 8:09, property tax on property worth more than, say, $500,000 would be better.
Maybe the same Luxury tax on items other than expensive cars is a good start?
Creatiivity at its best! When will they ever learn to stop milking the same old cash cows. Raising fees and tarriffs only result in increased costs for products and services.
Diversify the economy! Regulate numbers gambling and ganja.
Reduce the exorbitant salaries and lifetime benefits paid to civil servants, UDP board appointees as well as MPs, and that would release a few bucks to buy some votes from NAU recipients.
In other words get rid of the premier and her gang of yes people!
Our leaders don’t learn, and never possessed the qualifications to understand basic economic principles. It’s not a requirement. Don’t even need a clean police clearance!
increased fees = increased cost for consumers….
thanks for nothing cig.
tax and spend…..a recipe for economic ruin for cayman
gas stations going add and extra 25 cents from now in preparation of this new fee increase.