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Obtain a Business License in the Cayman Islands

Obtain a Business License in the Cayman Islands

Obtaining a business license in the Cayman Islands is mandatory for companies operating within the jurisdiction. There are multiple licenses required, depending on the business nature. Our specialists in the Cayman Islands incorporation process can help identify the specific licenses your company may need and assist in the entire process.

The Trade and Business License (TBL)

One of the most important business licenses in the Cayman Islands is TBL (The Trade and Business License). It is mandatory for any company wishing to conduct trade or business within the jurisdiction and is issued by the Trade and Business Licensing Board.

To be eligible for this license, applicants must meet certain criteria, including:

  • At least 60% of the company ownership must be held by Caymanian citizens or legal residents;
  • The company must be officially registered with the Cayman Islands Registrar of Companies.

In the case of sole proprietorship, the owner must be Caymanian.

Some individuals do not require securing a TBL. This generally refers to: agricultural workers, local artists, artisans, craftsmen, and fishermen. Charities are also exempt from obtaining this trade license in the Cayman Islands.

If a company cannot meet the ownership requirement, it must apply for another business license in the Cayman Islands, specifically the Local Companies Control License (LCCL).

The process for obtaining a TBL involves submitting an application to the Trade and Business Licensing Board. The request will be reviewed within two to four weeks, but this period can be extended in certain cases.

Please note that this license is mandatory for all types of business activities, not only trade. Therefore, all companies must obtain this trade license in the Cayman Islands, even if they do not exchange businesses/services.

Our specialists in Cayman Islands company formation can help businesses obtain the TBL.

The Local Companies Control License (LCCL)

As mentioned above, LCCL is a business license in the Cayman Islands required for companies that are not at least 60% Caymanian-owned.

The Trade & Business Licensing Board will determine if the company qualifies to obtain the LCCL. The Board will carefully evaluate several factors, including: the potential benefits the business could bring to the jurisdiction, if the company actively seeks to involve Caymanians in its ownership or management, and if the company is a direct competitor to an already existing Caymanian business.

If the business is approved for the LCCL, it will receive the TBL as well, allowing it to operate legally in the Cayman Islands.

Our team will help foreigners set up a Cayman Islands company and secure a license for their operations. 

Licensing from The Cayman Islands Monetary Authority (CIMA)

Banks, trust companies, company management firms, investment entities, and other financial service companies do not need to obtain a TBL or LCCL. Instead, they must apply for a business license in the Cayman Islands with CIMA.

The application process differs depending on the type of activity involved.

Statistics about companies in the Cayman Islands

Investors who wish to open a company in the Cayman Islands can find the following statistics useful:

  • 5,090 new companies were incorporated in 2023;
  • Most companies (3,907) were Cayman Islands exempted companies;
  • 397 registrations were for domestic companies.

If you need more details about the trade licenses in the Cayman Islands, do not hesitate to contact our specialists.