Cayman Island Task Force Debates Local Business License Legislation

Caymannetnews

09 April 2001

This story is reproduced by the kind permission of the Cayman Net News service at: http://www.caymannetnews.com

The Cayman Island Chamber of Commerce Immigration/Labour Task Force has submitted to its members a comprehensive list of recommendations on whether further inward foreign investment in various industries in the Cayman Islands were desirable.

The Chambers newsletter pointed out that "some of the recommendations were wide ranging, and indeed, controversial." Additionally, the letter stated that: "Stay-over tourism is declining whilst the financial services industry is showing signs of a slowdown. Going a step further the Chamber stated that they thought the composition of Government Boards such as Trade & Business Licensing Board and Immigration Board need to be amended to include private sector appointments with the private sector holding the balance of power on such Boards."

Some of those recommendations state that Government needs to develop an economic policy that will define the future strategy for the development of Cayman Islands. Foreign institutions and businesses coming to the island should be encouraged. However, the Chamber Task Force felt that the primary issue for financial services was not related to investment but to the supply of labour:

"The limited size of the Caymanian labour pool results in the importance of foreign labour to support these businesses. We have a political and social climate which is concerned by the number of foreigners in employment in Cayman."

The Task Force says that the Islands' existing legislation and regulation pertaining to foreign investment are adequate, but should be better explained: "The Local Company Control Licenses (LCCL) should not be issued to entities in certain 'restricted' business sectors such as water sports, real estate agencies and management companies, restaurants and public transport. The 60/40 local business ownership rule works.", The Chamber's letter states:

The Chamber also felt that an Investment and Business Development Council be established with appropriate funding from Government and the private sector. "To encourage foreign investors there must be a body which can provide all the relevant information and a consistent approach to potential investors."

In regard to real estate ownership, the task force recommended that the two units of property immigration directive stating that no one foreigner can own and lease more than two units of property without first obtaining a work permit needs to be clarified.

The task force also recommends that foreign investment in real estate is still to be encouraged and special permission or licenses could still be issued in justifiable cases such as hotels, or large condominium developments.

Recommended