Special Economic Zones Regulations (2018 Revision)

Summary

This is the 2018 Revision of the Special Economic Zones Regulations, made under the Cayman Islands' Special Economic Zones Law. It sets out the administrative mechanics for obtaining and maintaining a Special Economic Zone (SEZ) trade certificate, which is the licence a company needs to operate within a designated SEZ such as Cayman Enterprise City.

• Application form: Form 1, Schedule 1.
• Trade certificate form: Form 2, Schedule 1.
• Fees payable: Set out in Schedule 2.
• Grant criteria: Since the 2017 amendment, Schedule 3 sets the guiding criteria the Special Economic Zone Authority (SEZA) must apply when deciding whether to grant a trade certificate for Cayman Enterprise City.

The document applies to companies (and their directors) seeking to establish or operate a business within a Cayman Islands Special Economic Zone, as well as to SEZA as the licensing authority. Applicants must already hold an existing exempted company before applying.

• Company and director details: Required as part of the application form.
• Know-Your-Client questionnaire: Required for each director.
• Supporting documents: Including incorporation certificate, register of directors, and developer approval, among others.

Schedule 3 Criteria

• Principal global activity: Evaluated as part of the company's application for Cayman Enterprise City.
• External-market/export orientation: A factor SEZA considers in granting a trade certificate.
• Avoidance of competition with existing local businesses: A criterion applied to applications.
• Restrictions on local manufacturing: Imposed as part of the evaluation criteria.
• Exclusion of financial services activities requiring CIMA licensing: With an exception for the Cayman Commodities and Derivatives Park, where AML/CFT due diligence and best practices agreed with SEZA/CIMA are required.

The regulations also fix specific fee amounts for trade certificates, annual renewal, amendments, and inspections.

Key obligations

• An application for a trade certificate must be submitted in the form set out in Form 1 of Schedule 1.
• Each director completing the Know-Your-Client form must notify SEZA of any material changes affecting the completeness of the information provided within twenty-one days.
• The trade certificate holder must pay the prescribed annual fee to keep the certificate valid.
• Fees must be paid as set out in Schedule 2: trade certificate fee $123, annual fee $492, amendment fee $50, and inspection fee $10.
• Before deciding on a trade certificate application (specifically for Cayman Enterprise City), the Authority must take into account the guiding principles/criteria set out in Schedule 3, including business classification, export/external-market focus, exclusion of local manufacturing without Cabinet consent, and exclusion of CIMA-regulated financial services activities (except for the Commodities and Derivatives Park).
• A trade certificate holder must abide by the regulations of the Special Economic Zones Law for the full duration of the certificate.

Applies to

Special Economic Zone companies (SEZCOs), applicants for a Special Economic Zone trade certificate, directors of Special Economic Zone companies, the Special Economic Zone Authority (SEZA)

Deadlines

• 21 days: A director must notify SEZA of any material changes affecting the completeness of the answers given in the Know-Your-Client/Personal Questionnaire within twenty-one days.