Official Guide to Investing in Cayman Islands - DSR Asset Management Ltd

8/9/2019 Official Guide to Investing in Cayman Islands - DSR Asset Management Ltd

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OFFICIAL GUIDE TO INVESTING

IN THE CAYMAN ISLANDS


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A MESSAGE FROM THE

Leader of Government Business

I am pleased to provide this guide on the investment climate of the Cayman Islands.

Our business environment is founded on sound regulation, political stability, low crime

and a modern physical, technological and professional infrastructure equal to the

demands of a global clientele.

Widely acknowledged as one of the worlds leading international financial centres, our

Islands have enjoyed a tax-neutral status throughout its history. There are no direct

personal, corporate or property taxes on the Cayman Islands.

Tourism and Financial Services are the two main pillars of the economy, providing residents with one of the highest p

capita incomes in the world. A flexible immigration policy and a high literacy rate contribute to the countrys success

workforce. Visitors to our shores are delighted to find a unique mix of cosmopolitan lifestyle in a tropical island settin

With these advantages in mind, the Cayman Islands Investment Bureau can introduce the international business

community to the many benefits of doing business in the Cayman Islands. At the same time, it can provide a single po

of contact to respond to emerging trends and the needs of potential investors.

I would like to invite you to be a part of our success and to join the growing ranks of world-class organizations

conducting business in the Cayman Islands.

Honourable W. McKeeva Bush, OBE, JP

Leader of Government Business,

Minister of Tourism, Environment, Development and Commerce


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A MESSAGE FROM THE

Chairman of the Growth Management/Investment Advisory Board

With the aim of enhancing economic growth, diversification through industry

development, job creation and access to foreign markets, the Cayman Islands

Investment Bureau is the key platform for establishing new businesses. Along with

the other members of the Board, I look forward to supporting its activities in

creating and embracing opportunities which contribute to the sustainable

development of these Islands.

Mr. Naul Bodden

A MESSAGE FROM THE

Executive Director, Cayman Islands Investment Bureau

To achieve its objectives of promoting investment in the Cayman Islands, the

Investment Bureau will assist potential investors by pulling together all the

necessary resources and information to simplify and accelerate the investment

approval process. As facilitators to the investment process, the Bureaus service

represent a unique set of resources providing access and guidance to the

investor. Our priority is to simplify and accelerate the approval process and establish

a mutually beneficial relationship for both the investor and the Cayman Islands.Mr. Dax Basdeo


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For a full listing of all organisations that contributed to this guide,

visit the Useful Contacts section on page 30

General Information ................................................................................1

Profile of the Cayman Islands

Political System

Judicial System

Economy

Taxation

Establishing a Business ......................................................................... 6

Company Registration

Business Licensing

Other Business Regulations .............................................................10

Patents and Trademarks

Development and Planning

Opening a Bank Account

Labour Regulations ............................................................................... 12

Work Permit Requirements

Terms of Employment

Infrastructure ............................................................................................14

Transportation

Utilities

Telecommunications

Postal Services

Entering and Living in the Cayman Islands............................ 20

Entry Requirements

Residency Requirements

Education and Training

Medical Services

Real Estate

The Cayman Islands Investment Bureau (CIIB) ................... 25

Contents ::


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General Information

Profile of the Cayman Islands ::

Location and Geography

The Cayman Islands is situated 480 miles south of Florida, U.S.A., and 180 miles northwest of Jamaica in the

Caribbean Sea.

One of the last remaining British Overseas Territories in the Caribbean, the Cayman Islands is made up of three

islands: Grand Cayman, Cayman Brac and Little Cayman, with a total land mass of 100 square miles. Grand Cayman

the largest and most populous of the three islands, is 76 square miles - 22 miles long and 8 miles wide.

Population

In 2004, the population of the Cayman Islands was approximately 44,000, with 60% being Caymanian and the

remainder made up mostly of expatriates from the United Kingdom, the United States, Canada and Jamaica. There

are more than 90 nationalities represented in the Cayman Islands today.

An overwhelming 95 per cent of the population lives in Grand Caymanwith George Town, the capital, home to

23,275 residentsfollowed by the districts of West Bay and Bodden Town. The diverse composition of the

population has contributed to a variety of cultural influences that create a fusion of music, fashion, cuisine

and lifestyle.

The main language is English, with Spanish frequently spoken as a second language.

Currency

The local currency is the Cayman Islands dollar (CI$), which is tied to the U.S. dollar at a fixed rate of CI$1.00 =

US$1.20 Currency is issued by the Cayman Islands Monetary Authority.


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Climate

The Cayman Islands has emerged as a major tourist destination due to its tropical climate, white sandy beaches and

superior dive sites. Located about 20 degrees nor th of the equator, the Cayman Islands enjoy a favourable climate

all year round. Temperatures are lowest in February ranging from 72F to 85F ( 22C to 29C) and warmest in July

from 85F to 90F (29C to 32C).

Political System ::

While many Caribbean dependencies began moving toward independence in the 1950s and 1960s, the Cayman

Islands opted for British Crown Colony status, now referred to as British Overseas Territory status.

The government is a parliamentary democracy, with free elections held every four years. The present constitution

provides for a system of government comprising the Governor, Cabinet and Legislative Assembly. The Governor is

appointed by the Queen and is responsible for defence, external affairs, internal security, and the police. In all other

matters, the Governor must follow the advice of the Cabinet, unless he or she deems this to be against the public

interest.

The Cabinet consists of five elected Members of the Legislative Assembly, voted into the Cabinet by the Assembly

itself, and three official membersthe Chief Secretary, the Attorney General and the Financial Secretary. The three

official members are appointed by the Governor, who presides over the Cabinet. The five elected members are

Ministers, each with a specific portfolio of subject areas and responsibilities assigned by the Governor.

Judicial System ::

The Cayman Islands has three resident judges and three magistrates. There are three courts: the Summary Court, the

Grand Court and the Court of Appeal. The Summary Court deals with both civil and criminal cases, which are

usually heard by a magistrate. Appeals from the Summary Court are heard in the Grand Court. The Grand Court is

a superior court of record which administers the common law and the law of equity of England, as well as locally

enacted and applied laws. The final court of appeal is the Judicial Committee of the Privy Council in the United

Kingdom.


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Economy ::

The Cayman Islands is known for its stable macroeconomic environment. Its integration into the global economy

coupled with dynamic growth in the two main economic sectors of tourism and financial services have delivered a

high standard of living for the average Caymanian citizen. GDP per capita was estimated at CI$36,793 in 2003.

The Cayman Islands have also benefited from relatively low inflation over the last five years. Between 1999 and

2003, inflation averaged a moderate 2.7%. Unemployment remains constrained as well, as a large proportion of the

labour force is constituted by non-Caymanian residents on work permits.

Financial Services

Political stability, a sound legal system, a stable banking environment, a sound regulatory regime, tax neutrality and the

absence of exchange controls make the Cayman Islands a highly attractive place to do business.

Given this environment, its not surprising that the Cayman Islands is a thriving centre for international finance

Caymans clientele have access to a wide array of services including banking, trusts, mutual funds, company

management, structured financing, vessel registration, insurance, and listings on the stock exchange. Supporting this

array of services are highly skilled legal, accounting and other professional advisors. It is home to the worlds leading

banks, investment agencies, and law and accounting firms.

Indeed, the Cayman banking sector has received an Aa3 country risk ratings from the leading ratings services and 47

of the 50 largest banks in the world are licenced here. The Cayman Islands banking sector adheres to the guidelines

of the Basle Committee on Banking Supervision. The Cayman Islands are a member of the Offshore Bank

Supervisors and the Caribbean Group of Banking Supervisors, both of which were formed under the auspices of the

Basle Committee. Banks adhere to the know your client rule. These rules have been approved by the U.S. Interna

Revenue Service, enabling institutions in the Cayman Islands to become qualified intermediaries under the U.S.

Withholding Tax Rules introduced on 1 January 2001.

As a leading domicile for offshore hedge funds, the Cayman Islands is also the second largest captive

insurance centre in the world, and the first choice worldwide for structured finance vehicles.


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In addition, a vibrant trust and corporate services sector is supported by English common law and an impressive

array of professional service providers, including international law firms and the presence of all of the big four

accounting firms.

Established in 1997, the Cayman Islands Stock Exchange (CSX) enjoys status as a recognised stock exchange

under Section 841 of the Income and Corporation Taxes Act 1988. Recognition by the U.K. Inland Revenue confirms

the CSX as an exchange of comparable merit and capacity to those in a major economy or significant financial

centre. Other major recognitions include grant of registered organisation status by the London Stock Exchange

and affiliate membership of the International Organisation of Securities Commission and Intermarket Surveillance

Group.

The CSXs listing rules have been designed to facilitate the listing of mutual funds and specialist debt securities, as

well as eurobonds, derivative warrants and depositary receipts. There is also a secondary listing facility for companies

listed on another recognised exchange. The Exchange is also able to list domestic equity, although demand for this

facility is currently limited.


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Tourism

The tourism sector provides a distinct, high-quality experience that attracts over two million visitors per year. Blessed

with sun-kissed beaches and the calm, turquoise waters of the western Caribbean, the Cayman Islands offers some

of the best diving and snorkelling in the world. All three islands are surrounded by healthy coral reefs which lie at

the top of dramatic walls and drop-offs close to shore, creating ideal conditions for diving and sport fishing.

With an estimated contribution of 50% to GDP and 27% to employment, tourism is a key driver to economic

growth in the Cayman Islands. Tourists spend over CI$900 million a year in the Cayman Islands, CI$30.7 million o

which accrue to the Government and statutory bodies.

Taxation ::

The Cayman Islands Government does not impose income tax, corporation tax, capital gains tax, or inheritance or

gift tax. There are no property taxes or rates and no controls on the foreign ownership of proper ty and land.

The bulk of government revenues are earned through consumption-based taxes, such as licensing fees and

customs duties. Customs duties range up to 40 per cent of the combined total of the cost, insurance, and freight o

the goods.

There is also a stamp duty of 5.0 per cent whenever land or property is bought or sold. One percent stamp duty is

payable on mortgages of less than CI$300,000 and 0.5 per cent on mortgages of CI$300,000 or higher.


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Establishing a Business

Company Registration ::

The registration of companies is governed by the Companies Law (2004 Revision), and all companies must be

registered with the Registrar of Companies. Companies can be formed with one shareholder and with no minimum

capitalisation requirements (except for Exempted Limited Duration Companies).

Client privacy is protected by the fact that the Registrar can only release the name and type of company, its date o

registration, the address of the registered office and the companys status. Disclosing any other information is

prohibited except where assistance to law enforcement agencies is required.

A company may be registered in the Cayman Islands in one of seven ways:

1. Resident Companies These are companies carrying on business in the Cayman Islands, which must report

annually to the Registrar and which can hold land. After registering and every year following, there is a fee of CI$150

for companies with capital of CI$42,000 or less. Companies with more than CI$42,000 in capital pay CI$350.

2. Non-Resident Companies An alternative to the exempted company, these must report annually to the

Registrar. However, they can only carry on such business in the Cayman Islands as needed to further any foreign

business. After filing Memorandum and Articles of Association and delivering the annual return each January afte

that, companies with capital of CI$42,000 or less pay CI$400; companies with more than CI$42,000 in capital pay

CI$565. A non-resident company may convert to a resident company or to an exempted company.

3. Exempted Companies These are companies that carry on their activities outside the Cayman Islands. Such

companies dont need to hold an annual general meeting; they can offer shares to the public in the Cayman Islands if

listed on the CSX; they report annually to the Registrar and they dont need to include the word limited after thei

names. After registration and after delivering their annual return each January, a fee is payable based on the level of

capitalization:


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An exemption allowing the holding of land may be obtained where the company has neither issued nor is

empowered to issue bearer shares.

4. Transfer by Continuation The Companies Law permits a company with limited liability and share capital to

become a Cayman Islands Exempted Company, provided it is incorporated in a foreign jurisdiction whose laws

permit or dont prohibit the relocation of the company.

The company must be constituted in a form or substantially a form that could have been incorporated as an

exempted company limited by shares. The fee payable for registration via continuation is the same as that payable

on registration of an exempted company.

5. Exempted Limited Duration Companies These are companies that can be treated as par tnerships but whose

duration must not exceed 30 years. In addition to any fees applicable under the registration of an exempted

company, an application fee of CI$200 is required.

6. Segregated Portfolio Companies Another form of exempted company, which allows statutory segregation of

assets and liabilities between segregated portfolios (cells) established within a company.

This type of company is usually reserved for captive insurance companies. However, recent changes to the

Companies Law extend the benefit of establishing segregated portfolios to other areas. The registration fee is

CI$500; annual fees are the normal exempt registration fee plus CI$2,000, and a fee of CI$300 for each segregated

portfolio, up to a maximum of CI$1,500.

Capitalization Fee

CI$42,000 or less. CI$470

Between CI$42,000 and CI$820,000 CI$660

More than CI$820,000 to CI$1.64 million CI$1,384

More than CI$1.64 million CI$1,968


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7. Foreign Companies These are companies incorporated outside the Cayman Islands that carr y on business

locally and which must be registered in the Cayman Islands. On delivery of the prescribed documents for registration

of a foreign corporation and each January after, there is a fee of CI$850. A foreign company that has registered with

the Registrar is allowed to hold land in the Cayman Islands.

Limited partnerships, which can be formed by two or more people of companies, are governed by the Partnership

Law (1995 Revision), which requires them to be registered with the Registrar of Limited Par tnerships.

The Exempted Limited Partnership Law (1997 Revision) allows limited partnerships to be formed for offshore

investors. However, these partnerships may not do business with the public in the Cayman Islands.

Additionally, every corporation must be licensed under the law relevant to its industry. These include:

Banks and Trust Companies Law (2003 Revision)

Insurance Law (2004 Revision)

Mutual Funds Law (2003 Revision)

Companies Management Law (2003 Revision)

Securities Investment Business Law (2003 Revision)

Provided all required documentation is in order, a 24-hour express service is available through the Companies

Registry. Also, in order to accommodate the Asian market, the Registry issues certificates in both Mandarin and

Cantonese.


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Business Licensing ::

All businesses and professionals operating in the Cayman Islands must be licensed under the Trade and Business

Licensing Law (2003 Revision). This is administered through the Trade and Business Licensing Board of the

Immigration Department.

The fees for licence application and annual renewal depend on the broad nature of the business and/or profession

Certain types of business premises, such as restaurants, also require inspection by the Depar tment of Environmenta

Health.

In addition, foreign-owned or controlled companies doing business in the Cayman Islands must obtain a licence un

der the Local Companies (Control) Law (1999 Revision). A company is considered foreign owned if less than 60 per

cent of the equity is owned by Caymanians or if less than 60 per cent of the board of directors is Caymanian.

This licence has a maximum duration of 12 years, but a longer period may be approved by the Governor. A

registration fee of CI$200 is required, and thereafter annual fees of CI$200 are due on or before January 31 after

the year the licence has been granted.


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Other Business Regulations

Patents and Trademarks ::

The owner of a current patent or trademark right in the United Kingdom may apply to the Cayman Islands Registra

of Patents and Trademarks to have their right extended to the Cayman Islands. This will provide the owner of the

right with all equivalent rights and remedies available in the United Kingdom.

The right will remain in force so long as it does in the United Kingdom and an annual renewal fee is paid to the

Registrar. Fees for various types of patents and trademarks are CI$100 for application and CI$50 for annual renewa

as laid out in the schedule to the Patents and Trademarks Law (1999 Revision).

Development and Planning ::

Applications for permission to carry out development must be made to the Planning Department in accordance

with land uses indicated in the Development and Planning Law (2003 Revision), Development and Planning

Regulations (2003 Revision), and the Cayman Islands Development Plan.

Applications for planning permission to carry out development must be made to the Central Planning Authority

(CPA) in Grand Cayman and the Development Control Board (DCB) in the Sister Islands. Land uses (zoning) are

indicated by The Development Plan. Application fees for commercial and industrial development must accompany

applications for planning permission, and are roughly CI$0.20 per square foot.

Planning permission is required even for an established location where the intended use of the location is significantly

different from what was originally approved. The application fee for a change of use will depend on the rate of

proposed new use; it is roughly CI$0.20 per square foot for commercial and industrial developments.

An Infrastructure Fund fee is also assessed depending upon the location of the development. These fees may be

either CI$2.50 per square foot, CI$1.50 per square foot or CI$0.50 per square foot, depending on the location in

Grand Cayman.

A building permit is required before construction can commence. Building permit fees range from CI$0.50 to CI$2.00

per square foot for commercial and industrial buildings, depending on location and type of use. Certificates of

Occupancy are required before buildings can be occupied.


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All major developments must go to the Central Planning Authority (CPA) for approval. The CPA may require an

Environmental Impact Assessment depending on the project (type and size) and its impacts. Advice on the

environmental impact of development projects is taken from the Department of Environment. The Depar tment o

Environment encourages pre-application consultation with project proponents to discuss areas of environmental

concern or mitigating impacts through best management practices and other internationally accepted mechanisms.

Opening a Bank Account ::

By law, all banks in the Cayman Islands adhere to mandatory due diligence requirements.

The following information/items are required before opening a personal account:

notarised copies of your drivers licence and passport to demonstrate your full name, nationality, date

and place of birth;

one document confirming your address (e.g., utility bill);

other contact details, including telephone/fax numbers, and employers name and address;

an original financial reference addressed to the bank, indicating a satisfactory relationship of more than

three years and quoting approximate average balances maintained over the past six months;

details regarding the purpose of the account, the nature and dollar volume of anticipated transactions,

and the source of funding of initial and subsequent deposits;

in addition, most banks require original character references addressed to the bank directly from a law

accounting firm.

Opening a business bank account for a company incorporated in the Cayman Islands

will also require the following:

full incorporation paperwork;

bank references from your current bank;

personal bank account information (as listed above) for all directors, members and signatories.


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Labour Regulations

Work Permit Requirements ::

Non-Caymanians or people not legally and not ordinarily resident in the Cayman Islands arent allowed to work in

the Cayman Islands without a work permit.

Under the Immigration Law (2003), a person or his/her employer may apply for a work permit to the Work

Permit Board or the Business Staffing Plan Board for employment in

Grand Cayman, or to the Cayman Brac and Little Cayman

Immigration Board for employment in the Sister Islands. In Grand

Cayman, all businesses employing fifteen or more work permit

holders must submit their work permit application through the

Business Staffing Plan Board as opposed to the Work Permit Board.

Businesses employing fewer than fifteen work permit holders have

the option of applying to either of these boards.

The boards may grant work permits for up to three years. Five-year

permits can also be granted to holders of certain positions that have

been approved under a business-staffing plan. A work permit holder

can work continuously for no more than seven years. After this, the

board cant normally grant any further work permits until that person

has left the Islands for at least two years. The only exceptions to this would be a worker designated an exempted

employee in a business staffing plan, or where there are exceptional circumstances. In such cases, the board may, at

its discretion, grant additional work permits to enable the person to complete an aggregate period of eight years,

thus making him or her eligible to apply for the status of permanent residence.

Work permit applicants must submit all prescribed fees for the first year when they apply. For each application, the

relevant fees include an administrative filing fee of CI$50; a repatriation fee for the prospective employee and each

dependent (CI$200 each); and a work permit grant fee, which depends on the appropriate employment category.

The work permit fee can range between CI$150 per annum for an unskilled worker to CI$15,000 per annum for

a chief executive in some industries.


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Terms of Employment ::

Under the Labour Law (2001 Revision), every employer who enters into a contract of employment with an

employee shall within ten working days of entering into such contract, furnish the employee with a written statement

of his conditions of employment. This statement covers, amongst other things, job title, responsibilities, special

requirements, regular working hours, rate of remuneration, and period of employment if any.

Labour Tribunals have been established under the Law for the purpose of hearing complaints from employers and

employees, though provision has also been made for the complaints to first go through a Conciliation and Mediation

process. In the event that this process fails to resolve the situation

it is then referred to the Labour Tribunal.

There is currently no National Minimum Wage in the Cayman

Islands.

Under the Health Insurance Law (2003 Revision), an employer must

pay the standard premium of any standard health insurance contract

issued by an approved insurer. Up to 50 per cent of this premium

can be recovered directly or deducted from the employees salary.

Health insurance coverage is also required for an employee within

the first fifteen days of employment.

Under the National Pensions Law (2000 Revision), employers dont have to provide pension plans or contribute to

pension plans for employees who do not have Caymanian status, or who are not permanent residents in the Cayman

Islands during the first nine months of their employment.


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Infrastructure

Transportation ::

Roads Infrastructure

The National Roads Authority (NRA) is responsible for the planning, construction and maintenance of Grand

Caymans approximately 140 miles of highly developed roadways.

The NRA is responsible for publishing a long term National Roads Plan (NRP) every four years, which provides the

basis for establishing medium to long term plans for transportation infrastructure development, thereby supporting

the high quality of life that is expected in the Cayman Islands.

Air Passenger Service

The main airport, Owen Roberts International Airport (ORIA), is a fully equipped commercial facility that handles

more than 800,000 international and domestic passengers each year. Located 1.5 miles East South East of the Capita

George Town, the airport has a 7,000 foot paved and grooved asphalt runway, a commercial airline terminal and a

separate general aviation terminal with weather briefing and flight planning facilities for private aircraft operators

Published operational hours are 1200 to 0200 UTC (7 AM to 9 PM local time).

International carriers operating out of ORIA, include the national airline, Cayman Airways, American Airlines, US

Airways, Delta, Northwest, Continental, Air Jamaica and Air Canada. British Airways operates a twice-weekly direct

flight to London.

Domestic service throughout the Cayman Islands is provided by Cayman Airways Ltd. and Island Air.

Air service to Cayman Brac is provided to the Gerrard Smith International Airport (GSIA). GSIA has a 6,000 foo

paved and grooved asphalt runway, a commercial airline terminal with weather briefing and flight planning facilities

for private aircraft operators. Published operational hours are 1200 to 0000 UTC (7 AM to 7 PM local time).

Service to Little Cayman is facilitated through the Edward Bodden Airfield, a 3,000 foot unpaved grass/dir t runway

and a domestic airline terminal.


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Civil Aviation Authority

The Civil Aviation Authority of the Cayman Islands is the statutory body responsible for aviation regulatory oversight

throughout the Cayman Islands and for aircraft registered in the Cayman Islands. Within the organization are

sections that specifically regulate and license aerodromes, aviation personnel, aircraft maintenance organization,

conduct aircraft airworthiness surveys, provide commercial and economic regulation, and maintain the Cayman

Islands Aircraft Registry.

The Aircraft Registry is the registry of choice for many owners and management companies with corporate

aircraft ranging from Cessna Citation, Gulfstream, Embraer, Airbus and Boeing Business Jets. Standards are rigid and

specifications exact to qualify, but this has lead to the register being highly respected and recognised throughout the

aviation industry internationally. Expertly qualified airworthiness surveyors inspect aircraft annually in their home

bases for ease and convenience.


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Port Authority

The Port of George Town is operated by the Cayman Islands Port Authority, with daily working hours of 1600 to

2400 and 2400 to 0800 for cargo. It is located at position 19.18N and 81.23W. Port traffic in 2003 mainly consisted

of cruise ships (73%), followed by cargo ship (24%) and tankers (3%).

The Port of George Town offers a full service to cargo vessels including warehousing facilities for cargo. Fresh water

and refueling facilities are also available to ships. Four anchorages are provided within the port area, and pilotage

and tugs are available on request. Anchoring is not allowed on coral anywhere in the Cayman Islands. Stevedoring is

typically arranged by a Ship Agent, but this facility is also offered through the Port Authority.

Berthing on the South Pier is 135 meters, with a depth of 3 to 6.6 meters. On the Roll on /Roll off Pier, one ramp is

available, and depths of up to 6.6 meters. There are 3 cranes for container handling, and an assor tment of container

headhandlers/forklifts.

The port handles mainly small container feeder vessels in the range of 500 Teu (twenty foot equivalent units) capacity

as roll on /roll off or lift on /lift off operations. The port handles upwards to 75,000 Teus per year. In addition bulk

cements, vehicles carriers and aggregate vessels are also discharged on a regular basis.

Required documents include: Bills of Lading, Crew List, Cargo Manifest, Ships Register Safety Certificate, and

Clearance from last port.

The Cayman Islands Shipping Registry

The Cayman Islands Shipping Registry (CISR), acts as the Maritime Authority of the Cayman Islands. The CISR is a

part of the Red Ensign Group of British registries and has been in existence since 1903 when the first vessel was

registered and became a Category 1 Registry in 1992 through a Categorisation Order issued by the United

Kingdom.


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It was originally set up to register ships and to administer the Merchant Shipping Laws and Regulations, which invoke

the International Conventions. Today, it is also responsible for survey, security, registration, pollution prevention and

other requirements arising from Governments responsibilities with regard to Cayman registered ships worldwide

and foreign ships in Cayman waters.

The CISR maintains a head office in the Cayman Islands, a satellite office in the United Kingdom and a

representative office in Greece. Each office is made up of proven professional individuals each with considerable

experience in maritime administration, registration and survey work and committed to operating a quality shipping

registry. The CISR is cer tified to ISO 9001:2000 which is an international standard for quality management systems

and is recognisable worldwide. Not only is this a measure of the CISRs quality of operation but it also meets the

requirements of the major oil companies that stipulate quality standards for the flag administrations whose ships

carry their oil.

In the category of commercial ships, the CISR is registering tonnage across the full spectrum of ship types. In the

category of yachts, the CISR has ascended to the position of being the worlds number one register for super

yachts over 120ft in registered length.

Utilities ::

Electricity

Electricity is 120 volts/60 Hz, the same as in the United States.

Electricity on Grand Cayman is supplied by Caribbean Utilities Co. Ltd. (CUC), which operates under a licence from

the Cayman Islands Government.

CUCs power system comprises 18 generating units with a combined capacity of 123 megawatts. The maximum peak

load experienced by the company to date was 85 MegaWatts in September of 2004. CUCs projections for powe

generation growth are based mainly on historical growth trends and planned major commercial developments.

The companys transmission and distribution system comprises six major transformer substations, 450 miles of

overhead high-voltage transmission and distribution lines, and 117 miles of high-voltage submarine cable.


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Water

The traditional sources of fresh water supply have been private wells and/or catchment in cisterns, but these have

been supplanted by a piped water supply in most areas of Grand Cayman and the western end of Cayman Brac. The

public water supply is provided by two companies: the Water Authority and Cayman Water Company. Both provide

desalinated water.

The Water Authority is the statutory body responsible for the management of potable water and waste water in

the Cayman Islands. The Authoritys piped water in Grand Cayman is distributed from five storage reservoirs: three

in George Town, with a total capacity of 3.2 million US gallons; and two in Lower Valley, with a capacity of 3.0 million

US gallons.

The Authoritys piped water in Cayman Brac is distributed from two storage reservoirs in West End with a

capacity of 750,000 US gallons. In Cayman Brac, water is produced by reverse osmosis; the plants production

capacity is 150,000 US gallons per day (gpd).

The Authoritys water producer in Grand Cayman is Consolidated Water Co. Ltd., which provides up to 2.9 million

gpd of desalinated water from three reverse-osmosis plantstwo at the Red Gate Water Works in George Town

and a third at the Lower Valley Water Works.

Cayman Water Company supplies more than 2.3 million gpd of piped water to its franchise area and also provides

trucked water on Grand Cayman from its facility on West Bay Road.


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Telecommunications ::

With the enactment of the Information & Communications Technology (ICT) Authority Law in 2002, the Cayman

Islands became one of the first countries in the world to officially recognise the convergence of telephony, radio and

broadcasting, the Internet and e-business.

The law established a single, independent authority to regulate the entire ICT sector in accordance with a consistent

legislative and regulatory framework.

For many years, Cable & Wireless (Cayman Islands) Ltd. held a monopoly to provide domestic and international

telecommunications to the Cayman Islands. However, following a two-year period of deregulation, in 2005, three

companies were licensed to provide the full range of state-of-the-art fixed voice and data telecommunications

services, and three others to provide mobile services.

These include Cable & Wireless, Cingular Wireless and Digicel. Additional licensees serve niche markets or will

introduce their services during 2005. Reliable telecommunications services to almost anywhere in the world are

available, as are digital cellular service, as well as dial-up and broadband Internet connections. In fact, the number o

both fixed and mobile phone lines per person is higher than in most developed countries. As a result, new investors

will find a choice of telecommunications providers and services that equals or betters those elsewhere. Prices are

steadily falling as competition intensifies among the licensees.

Postal Services ::

Postal services are provided through the Cayman Islands Post Office, a government department. Mail is delivered via

private post boxes at one of the 15 post offices located throughout the Islands. All mail not addressed with a post

box number will be returned to the sender. The Cayman Islands Post Office is par t of the Universal Postal Unions

international network of postal administrations, so mail comes from and may be delivered to any country in the

world.

Local and overseas courier services are also available through DHL Worldwide Express, FedEx, Sprint Express

Services, UPS and the Cayman Islands Post Office.


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Entering and Living in the Cayman Islands

Entry Requirements ::

A visa is not required to enter the Cayman Islands from Commonwealth countries, the United States, and certain

other countries. However, a visitor must hold a return airline ticket to his or her country of origin or proof of lega

residence and enough funds to maintain themselves while in the Islands.

American and Canadian citizens travelling directly to the Cayman Islands from the United States and Canada do not

need visas. They only need their proof of citizenship for entry, such as a passport or an official birth certificate (not

a copy), plus photo identification (such as a drivers licence). Citizens of all other countries need passports.

While many travel agents are knowledgeable about visa requirements, the only authority is the Cayman Islands

Immigration Department, represented throughout the world by British Embassies and Consulates. Visitors should

contact the nearest British Embassy or Consulate, or the Cayman Islands Immigration Department, and ask about

the requirements for visitor entry into the Cayman Islands.

Visitors are normally permitted to enter and remain for up to one month. Visits may be extended; applications for

an extension must be made to the Immigration Department.

Residency Requirements ::

Visitors who qualify under one of the following four categories may apply to reside permanently

in the Cayman Islands:

persons who have been legally and ordinarily resident here for at least eight years;

persons married to Caymanians;

wealthy retirees; and

entrepreneurs or investors.

Applications under the categories wealthy retiree and entrepreneurs or investors are made to the Chief

Immigration Officer and decided by him. In the case of wealthy retirees, a successful applicant will be granted a

certificate valid for 25 years, permitting him/her and any dependants to live in the Cayman Islands without the right

to work. This cer tificate is renewable. Persons meeting the criteria for the entrepreneurs or investors category wil

also be issued a certificate valid for 25 years. This certificate is also renewable and carries the right to work in the

licensed business or businesses in which they have invested.


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Education and Training ::

Many public and private high schools in the Cayman Islands prepare students for external examinations from the

Caribbean Examination Council (CXC) as well as for the U.K.s International General Certificate of Secondary

Education (IGCSE).

There are several post-secondary institutions. These include the Cayman Islands Law School, which is affiliated with

the University of Liverpool in England; St. Matthews University School of Medicine, which prepares graduates for

the United States Medical Licensing Exam (USMLE); and the University College of the Cayman Islands, which offers

several programmes, including three Associate degrees and a Bachelor of Science in Business Administration.

A number of other short professional development courses and workshops are also available through the Cayman

Islands Chamber of Commerce. These courses, which range from a half day to four weeks, cover areas such as

business legislation, human resources, finance, supervision and management.


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Medical Services ::

There are modern medical facilities on Grand Cayman, Cayman Brac and Little Cayman. On Grand Cayman, there

are two major hospitals and a number of privately run facilities.

The Cayman Islands Hospital, a modern, 139,066-square-foot, two-storey facility provides full-service, 24-hour

medical care. It is the principal health care facility in the country, providing accident and emergency services; a wide

range of surgical services; a critical care unit; pharmacy and laboratory services; including a state-of-the-art forensic

unit; as well as other facilities expected in a modern health care centre.

Specialist services are available in the fields of surgery, gynaecology and obstetrics, paediatrics, internal medicine,

dermatology, anaesthesiology, public health, orthopaedics, psychology, cardiology, psychiatry, radiology, pathology,

neurology, nephrology, ophthalmology, otolaryngology, periodontology, reconstructive surgery, maxillofacial surgery

and urology.

Other hospitals include:

The Chrissie Tomlinson Memorial Hospital, a

family-owned and operated institution, is also

open to all visitors and residents.

The Faith Hospital on Cayman Brac has 18 beds

and provides primary, basic secondary and

emergency care. There is a modern inpatient unit,

as well as an operating theatre, maternity ward,

accident and emergency department, outpatient clinic and public health department. Per capita, Faith Hospital has

more physicians and specialty staff than any county hospital in the United States. It is indeed a unique and

extraordinary health facility for residents, visitors and tourists.

The Little Cayman Health Clinic provides routine medical and dental services to residents and visitors.

Pre-hospital care is also provided by certified emergency medical technicians who are certified in advanced cardiac

life support. There is also an efficient, island-wide 911 emergency service.


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Real Estate ::

There are no legal restrictions on property ownership by foreigners in cases where the property is for personal use

although real estate ownership for business purposes is subject to licensing. Title to all Cayman Islands real estate can

be held by individuals (either alone or with others jointly or as proprietors in common) or in the name of a company

However, in the latter case, appropriate company type must be registered with the Registrar of Companies and must

be in good standing.

The Cayman Islands Real Estate Brokers Association (CIREBA) is the countrys professional organisation of realtors

The association provides industry standards on commissions, business forms and a code of ethics for its members

CIREBA monitors its members to ensure that the public is served with professionalism and integrity. There are 29

member firms, with more than 170 agents. CIREBAs multiple listing service coordinates the listings and sales effor ts

of its member companies and agents, and over US$500 million of proper ty listings.

The Lands and Survey Department is responsible for all land-related matters in the Cayman Islands. The department

operates with five sections: the Land Registry, the Valuation Office, Land Survey, GIS Mapping Production and GIS

Systems Development.

The Land Registry records all land transactions in the three islands through electronic registers that define ownership

and interest. Because every piece of property is registered under a unique block and parcel number, an interested

investor can examine the records for liens, charges or restrictions on the proper ty under consideration. As a result

the process of buying land is safe and straightforward since the Cayman Islands Government effectively guarantees

title.

The Valuation Office manages Crown land. It handles property valuations and acquisitions for government, as well as

valuations for the purposes of assessing stamp duty on all transfers, lease agreements and other instruments.

The Land Survey section conducts all government surveys and checks and monitors the work carried out by

licensed land surveyors.

The departments Geographic Information System (GIS) electronically records and maintains a large variety of land

reference data for the Cayman Islands. This includes registry and topographic maps, street address information, aeria

photography and planning zone information. Bespoke maps are available on request.


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The Cayman Islands Investment Bureau (CIIB)

Mission: To lead in facilitating and securing appropriate long-term inward and local investment

the Cayman Islands, in partnership with other government agencies and the private sector.

Under the auspices of the Ministry of Tourism, Environment, Development and Commerce, the CIIB is responsible f

promoting inward investment in the Cayman Islands.

Launched in 2003, the CIIB has the following mandate:

to enhance the reputation of the Cayman Islands as an investment location;

to target and generate investment opportunities in accordance with overall development policies

of the Cayman Islands Government;

to provide investor services, including pre-investment and after-care services, and to facilitate linkages

with local investors;

to advise the Cayman Islands Government on policy, legislation, regulation and licensing changes that will

enhance the investment climate.


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CIIB Services

CIIBs focus is to attract high-value foreign investment that requires high skill levels and a sophisticated business

environment. The bureaus professional staff provides a broad range of consultation, liaison and coordination services

helping both foreign and local investors proceed smoothly with their investment in the Cayman Islands and

facilitating their operations.

The CIIB provides information on investing in key business sectors within the Cayman Islands, as well as information

on the countrys investment climate and related laws and regulations. As an investment intermediary, the bureau can

assist in setting up a new business, and in removing investment obstacles. It can also assist potential investors by

introducing them to local industry, government and other service providers.

Fiscal Incentives ::

The CIIB makes recommendations on the level of fiscal incentives to be granted to companies who want to locate

in the Cayman Islands or to expand their existing operations. The unique characteristics of any proposed project wil

determine the incentive package available. The CIIB evaluates potential projects on the following criteria:

the quality of employment created;

the location within the Cayman Islands; and

the value of the proposed investment project to the Cayman Islands.

Overseas Investment Offices

The CIIB has two investment offices overseas: one in London and the other in Hong Kong and a satellite office in

New York. These offices can provide consultation services about investing in the Cayman Islands, and can assist

foreign investors interested in pursuing investment projects.


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Useful Statistics

Table 1: Surface Area of the Cayman Islands

Table 2: Economic Indicators

Table 3: Social Indicators

Table 4: Merchandise Trade (CI$M)

CAYMAN ISLANDS TOTAL GRAND CAYMAN CAYMAN BRAC LITTLE CAYMAN

Land (sq. miles) 93.0 69.4 14.9 8.7

Inland Waters (sq. miles) 9.0 6.6 0.1 2.3

Islands Total (sq. miles) 102.0 76.0 15.0 11.0

2001 2002 2003

GDP at current market

priceS ($M)

1,482.3 1,546.0 1,603.2

Real GDP Growth(%) 0.6 1.7 2.0

Per Capita GDP($) 35,848 36,419 36,793

Inflation Rate (%) 1.1 2.4 0.6

Total Labour Force 27,791 28,905 29,905

Employed Labour Force 25,862 27,354 28,827

2001 2002 2003

Population - Year End 41,900 43,004 44,144

Proportion of Caymanians

(%)

53 58 59

Student Staff Ratio (Re-

ception to Secondary)

11.7 12.2 12

Doctors per 1,000 year

end population

1.9 2.2 1.7

2001 2002 2003

Imports 514.9 494.4 553.5

Fuel 48.1 49.4 43.2

Exports 2.4 3.0 4.3

Balance -512.5 -491.4 -549.2


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Table 5: Financial Services

Table 6: Tourism

Table 7: Utilities Consumption

2001 2002 2003

Bank & Trust Licences 427 383 349

Trust Companies 118 125 122

Class A Insurance Licences 30 29 28

Class B Insurance Licences

(Captives)

542 600 644

Mutual Fund Registrations 3,648 4,285 4,808

Total Company Registrations 64,495 65,259 68,078

New Company Registrations 8,456 7,016 7,2542001 2002 2003

Visitor Air Arrivals (000) 334.1 302.8 293.5

Cruise Ship Arrivals (000) 1,214.8 1,574.8 1,819.0

2001 2002 2003

Jan-Dec Jan-Dec Jan-Dec

Water

Water Consumption (US millions

of gallons)

1,069.2 1,056.1 1,220.8

Electricity

Electricity Usage (MWh) 407.0 425.6 444.3

Telecommunications

Telephone/Fax Paid Minutes

(millions)

40.3 39.7 36.3

Internet Lines 8,660 9,181 9,909

Telephone Lines 31,580 33,200 32,967


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2001 2002 2003

Port Statistics

Domestic Cargo (tons) 82,322 71,785 92,590

Containerized Cargo 66,665 57,973 70,482

Break Bulk Cargo 15,657 13,811 22,108

Tons Handled per Hour 108 91 99

Port Calls 140 123 107

Passenger Ships Calls 291 356 383

Airport Statistics

International Freight (Lbs.) 7,108,650 5,758,442 6,106,001

International Aircraft Movements 14,330 15,897 16,865

Table 8: Port & Air Service Statistics


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Useful Contacts

Cayman Islands Investment Bureau

Main Office

Cayman Corporate Centre,

Hospital Rd. 1st Floor

PO Box 10087 APO

Grand Cayman, Cayman IslandsPh: (345) 945-0943

Fax: (345) 945-0941

Email: [email protected]

Website: www.investcayman.gov.ky

London Office

6 Arlington St.

London

SW1A 1RE

United Kingdom

Ph: +44 (207) 491-5050

Fax: +44 (207) 409-7773

Hong Kong Office

Office 3207

32F/ Lippo Centre Tower Two

89 Queensway Road

Admiralty, Hong Kong, China

Tel: (852) 3158 0260

Fax: (852) 3158 0270

New York Office

3 Park Avenue

39th Floor

New York, NY 10016

Tel: (212) 889-9009Fax: (212) 889-9125

Cayman Islands

Department of Tourism (DOT)

Main Office

PO Box 67

Grand Cayman, Cayman Islands

Tel: (345) 949-0623

Fax: (345)949-4053

Website: www.caymanislands.ky

Miami Office

Doral Centre

8300 NW 53rd Street

Suite 103

Miami, FL 33166

Tel: (305) 599-9033

Fax: (305) 599-3766

(DOT) Continued...

New York Office

3 Park Avenue

39th Floor

New York, NY 10016

Tel: (212) 889-9009

Fax: (212) 889-9125

Houston OfficeTwo Memorial City Plaza

820 Gessner

Suite 1335

Houston, TX 77024

Tel: (713) 461-1317

Fax: (713) 461-7409

Chicago Office

One Lincoln Centre

18W140 Butterfield Road

Suite 920

Oakbrook Terrace, IL 60181

Tel: (630) 705-0650Fax: (630) 705-1383

Canada Office

234 Eglington Avenue East

Suite 306

Toronto, Ontario, Canada M4P 1K5

Tel: (416) 485-1550

Fax: (416) 485-7578

In Canada: 1-800-263-5805

United Kingdom & Continental European

Regional Office

6 Arlington Street

London SW1 1RE

Tel: +44 (0) 20 7491-7771

Fax: +44 (0) 20 7409-7773

Website: www.caymanislands.co.uk

Government Departments and

Statutory Authorities

Agriculture Department

PO Box 459 GT

Lottery Rd., Lower ValleyGrand Cayman, Cayman Islands

Tel: (345) 947-3090

Fax: (345) 947-2634


Website: www.gov.ky

Economics & Statistics Office

4th Floor, Elizabethan Square Phase IV

Shedden Rd., George Town


Tel: (345) 949-0940

Fax: (345) 949-8782


Website: www.eso.ky

Postal DepartmentGeneral Post Office

George Town


Tel: (345) 949-2474

Fax: (345) 945-1246

Immigration Department

Chief Immigration Offices

PO Box 1098 GT


Tel: (345) 949-8344

Fax: (345) 949-8486

Website: www.gov.ky/immigration

Department of Employment Relations

PO Box 10727 APO

Royal Plaza, Cardinal Ave.

Tel: (345) 945-3114

Fax: (345) 945-3115

Website: www.employmentservices.gov.ky

Planning Department

P.O. Box 1036 GT


Tel: (345) 769-7526

Fax: (345) 925-5011Email: [email protected]

Website: www.planning.gov.ky

Department of Environment

Marco Giglioli Centre

580 North Sound Road

PO Box 486 GT

Tel: (345) 949-8469

Fax: (345) 949-4020


Website: http://doe.8m.com

Department of Environmental Health

Marco Giglioli Centre

580 North Sound Road

PO Box 1820 GT

Tel: (345) 949-6696

Fax: (345) 949-4503



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Registrar of Companies

3rd Floor

Elizabethan Square Fl.


Tel: (345) 925-8812

Fax: (345) 949-0969

www.gov.ky

Lands and Survey Department

Government Administration BuildingElgin Avenue


Tel: (345) 949-7900

Fax: (345)

Website: www.gov.ky

Cayman Islands Monetary Authority

Elizabethan Square

PO Box 10052 APO


Tel: (345) 949 -7089

Fax: (345) 949-2532

www.cimoney.com.ky

Cayman Islands Stock Exchange

Elizabethan Square

PO Box 2408 GT


Tel: (345) 945-6060

Fax: (345) 945-6061

www.csx.com.ky

Civil Aviation Authority

of the Cayman Islands

P. O. Box 10277 APO

Units 3 & 4 Cayman Grand HarbourGrand Cayman, Cayman Islands

Tel: (345) 949-7811

Fax: (345) 949-0761


Website: www.caacayman.com

Port Authority of the Cayman Islands

Port Authority Building

Harbour Drive

PO Box 1358 GT


Tel: (345) 949-2228/2055

Fax: (345) 949-5820/5685

www.caymanport.com

Customs Department

H.M. Customs Headquarters

Airport Road

PO Box 898 GT


Tel: (345) 949-4579/2473

Cayman Islands Shipping Registry (CISR)

Kirk House Building

PO Box 2256


Tel: (345) 949-8831

Fax: (345) 949-8849

www.caymarad.org

Information & Communications

Technology AuthorityPO Box 2502 GT


Tel: (345) 945-8283

Fax: (345) 945-8284


Website: www.icta.ky

Utility Companies

Caribbean and Utilities Company (CUC)

PO Box 38


Tel: (345) 949-5200Fax: (345) 949-5203


www.cuc-cayman.com

Cayman Water Company Ltd.

PO Box 1114


Tel: (345) 945-4277

Fax: (345)945-4191

Email:[email protected]

www.cwcm.com

Water Authority of CaymanPO Box 1104


Tel: (345) 949-6352

Fax: (345) 949-0094

Major Trade and Industrial

Organizations in the Cayman Islands

Cayman Islands Bankers Association

PO Box 676GT

Harbour Centre, Harbour Drive

Grand Cayman

Tel: (345) 949-0330

Fax: (345) 945-1448


Cayman Islands Chamber of Commerce

PO Box 1000GT

2nd Fl. MacDonald Square

Fort Street, George Town

Grand Cayman

Tel: (345) 949-8090

Fax: (345) 949-0220


Cayman Islands CompanyManagers Association

c/o International Management

Services (IMS) Ltd.

PO Box 61GT

Harbour Centre, Harbour Drive


Tel: (345) 949-4244

Fax: (345) 949-8635


Cayman Islands Financial Services

Association (CIFSA)

PO Box 11048 APOGrand Cayman, Cayman Islands

Tel: (345) 946-6000

Fax: (345) 946-6001


Website: www.caymanfinances.com

Cayman Islands Fund

Administrators Association

c/o CITCO Fund Services

PO Box 31106 SMB

Safehaven Corporate Centre


Tel: (345) 914-8476Fax: (345) 949-3877

Email. [email protected]

Cayman Islands Law Society

PO Box 10390 GT


Tel: (345) 949-8066

Fax: (345) 949-8080

Email: char [email protected]

Cayman Islands Society of

Professional Accountants

c/o Ernst and Young

PO Box 510 GT

One Capital Place, Shedden Road


Tel: (345) 914-1444

Fax: (345) 949-8529



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Cayman Islands Real Estate

Brokers Association (CIREBA)

PO Box 1977 GT

Crighton Building, Crewe Road


Tel: (345) 949-7099

Fax: (345) 949-6819

Website: www.cireba.com

Caymanian Bar Associationc/o Walkers

PO Box 265 GT

Walkers House, 87 Mary Street


Tel: (345) 914-4229

Fax: (345) 814-8229


Cayman Islands Compliance Association

c/o Maples and Calder

PO Box 309 GT

Ugland House, South Church Street

Grand Cayman, Cayman IslandsTel: (345) 949-8606

Fax: (345) 949-8080


Cayman Islands Society of Financial Analysts

c/o GLG Partners Services Limited

PO Box 2427 GT


Tel: (345) 946-2905


Insurance Managers Association of Cayman

PO Box 10552 APOGrand Cayman, Cayman Islands

Tel: (345) 949-7988

Fax: (345) 949-7849


Website: www.caymancaptive.ky

National Airline

Cayman Airways Ltd.

Corporate Headquarters

233 Owen Roberts Dr.

PO Box 10092 APO


Tel: (345) 949-8200

Fax: (345) 949-7607


Website: www.caymanairways.com

Documents

Official Guide to Investing in Cayman Islands - DSR Asset Management Ltd