Cayman Islands7 Things To Know About Cayman Special Economic Zone in 2024

• There are several factors to take into account when starting an offshore business. Knowing about the Cayman special economic zones (SEZ) and how they might assist your company build its global footprint is unquestionably advantageous. Cayman Enterprise City, Cayman’s exclusive operator of special economic zones, provides the assurance that operating there will result in the establishment of a true offshore physical presence.
• A government program known as the Cayman Islands Special Economic Zone (SEZ) aims to encourage economic growth and diversity in the Cayman Islands. It was introduced in 2011 with the goal of luring foreign companies and investors to the Cayman Islands by providing them with a number of advantages and incentives.
• If you are contemplating starting a business in Cayman Special Economic Zone but are concerned about how then Tetra Consultants’ team of business setup experts is here to resolve all your concerns. In this article, our team of business consultants has given insights few of the important aspects of the Cayman Special Economic Zone so that you can make a more informed decision before you proceed to expand your business in the Cayman Islands Free Trade Zones in 2024.

7 Things To Know About Cayman Special Economic Zone 

1. Why Cayman Special Economic Zones?

• A wide range of facilities and services, including a top-notch infrastructure, reduced administrative procedures, and a number of tax and financial advantages, are offered to enterprises by the SEZ. The SEZ is separated into a number of zones, including Cayman Enterprise City, which seeks to attract businesses in the media, financial services, and technology industries. 
• Zero corporate tax, no income tax, no capital gains tax, no withholding tax, and no import duties on supplies are all advantages for businesses that establish themselves in the SEZ. Also, they have access to a workforce that is highly qualified and multilingual as well as a variety of support services, including legal, accounting, and marketing services.
• The SEZ has been effective in luring a variety of firms, including multinational organizations, start-ups, and entrepreneurs, to the Cayman Islands. It has contributed to economic diversification in the Cayman Islands and the emergence of fresh chances for expansion and improvement. The business-friendly government of Cayman has given companies that establish a physical presence inside the Cayman Enterprise City (CEC) SEZs a variety of globally competitive privileges.
• Companies may benefit from CEC’s expedited company licensing, 5-day visa processing, expert corporate relocation services, and access to a network of international business specialists. The red tape, high expenditures, and uncertainty associated with having a physical presence offshore are eliminated by CEC’s special economic zones. A SEZC may be incorporated with CEC with no minimum capital requirement as well.

2. What does SEZC mean?

• Any business registered with any of Cayman Enterprise City’s SEZs must use the “SEZC” abbreviation, for instance, “ABC Trade SEZC.” Your company is referred to as a “Special Economic Zone Company” because of the initials “SEZC” in its name.
• The Special Economic Zones Act’s strict licensing and background checks are confirmed by the SEZC designation, which also attests to your company’s genuine physical presence in the Cayman Islands within CEC’s award-winning, internationally recognized special economic zones and that it is subject to ongoing regulatory oversight by the Special Economic Zone Authority (SEZA) of the Cayman Islands Government, which oversees all special economic zones in the Cayman Islands.

3. What are special concessions offered to companies registered in Cayman Special Economic Zone?

• All SEZCs have access to the following special concessions:
• Easy company formation 
• No taxation on corporate profits, capital gains, or personal income
• 100% foreign ownership permitted
• 100% exemption from import duties
• A fast-track business setup, inclusive of a business license and work visa 
• Reduced import duty, business licensing, and work visa fees
• A five-year residency granted for employees and their dependents

4. Which are the main Cayman Special Economic Zones?

• There are three main SEZs in the Cayman Islands: Cayman Enterprise City (CEC), Cayman Maritime & Aviation Services Park (CMASP), and Cayman Commodities & Derivatives City (CCDC). Each zone has its own focus and offers a range of benefits and incentives to businesses.

5. What is the purpose of the development of Cayman Special Economic Zones?

• The primary goal of the Cayman Islands Special Economic Zones is to attract international companies and investors to the Cayman Islands and to help diversify the local economy.
• The SEZ offers a range of incentives to companies that set up there, including zero corporate tax, no income tax, no capital gains tax, no withholding tax, and no import duties on goods and equipment.
• The SEZ is divided into several zones, each designed to attract companies in specific sectors. The Cayman Enterprise City, for example, is focused on technology, media, and financial services.
• The SEZ provides world-class infrastructure, including modern office buildings, high-speed internet, and advanced telecommunications. Further, companies that are set up in the SEZ have access to a highly skilled and multilingual workforce, which includes both local and expatriate workers.

6. What are the support services offered by Cayman Islands government?

• The Cayman Islands Special Economic Zones (SEZs) offer government support services to companies operating within the zones. Some of the key services provided by the government to SEZ companies include:
• Investment Promotion: The Cayman Islands Investment Bureau promotes the Cayman Islands as an attractive location for foreign investment, providing information and assistance to companies considering establishing operations within the SEZs.
• Infrastructure Development: The government is committed to developing and improving infrastructure within the SEZs, including roadways, telecommunications, and other necessary facilities.
• Customs Services: The Cayman Islands Customs Department provides a range of services to SEZ companies, including the processing of import and export documentation and customs clearance.
• Business Support Services: The Cayman Islands Small Business Development Centre provides a range of business support services to SEZ companies, including advice on financing, marketing, and other business-related issues.
• Regulatory Support: The Special Economic Zone Authority (SEZA) provides regulatory support to SEZ companies, including licensing, compliance monitoring, and assistance with regulatory issues.
• Training and Development: The government provides training and development programs for SEZ companies, including skills development and training programs for local workers.

7. What are the regulations governing a company set up in Cayman Special Economic Zone?

• The Cayman Islands Special Economic Zones (SEZs) are governed by the Special Economic Zone Authority (SEZA) and the Special Economic Zone Law, 2011, and Regulations, which outline the rules and regulations for companies operating within the SEZs. Some of the key regulations governing the SEZs in the Cayman Islands include:
• Eligibility: Companies must meet certain eligibility criteria to qualify for SEZ status, including being engaged in an approved activity, having a physical presence within the SEZ, and meeting certain financial and performance criteria.
• Licensing: Companies must obtain a license from the SEZA to operate within the SEZ. The licensing process includes a review of the company’s eligibility, financial stability, and compliance with regulations.
• Taxation: Companies operating within the SEZs benefit from a range of tax incentives, including exemptions from import duties, corporate income tax, and property tax, as well as reduced rates for work permit fees.
• Employment: Companies operating within the SEZs must comply with the Employment Law of the Cayman Islands, including minimum wage and work permit requirements for foreign workers.
• Compliance: Companies operating within the SEZs must comply with all relevant laws and regulations, including those related to environmental protection, health and safety, and anti-money laundering and counter-terrorism financing.
• Reporting: Companies operating within the SEZs must submit regular reports to the SEZA, including financial reports, employment reports, and reports on compliance with regulations.

Looking to register a company in a Cayman Special Economic Zone?

• Setting up a company in the Cayman Islands SEZs is a straightforward process that offers many benefits to businesses. The SEZ authority provides support and guidance throughout the process, making it an attractive location for businesses looking to expand or relocate.
• As such, Tetra Consultants hopes that this article has provided you with a much better understanding of the legal framework of Cayman Special Economic Zones so that you can truly decide whether you should do so yourself. So, what are you waiting for? 
• Contact us to find out more about the process to register company in Cayman Islands, and our dedicated and experienced team will respond within the next 24 hours. 
• Tetra Consultants will not only empower you by helping to navigate the different regulations of the Cayman Islands Special Economic Zones but also aid in facilitating the registration of your company there while providing invaluable, nuanced insights into any potential challenges.