A new Trade and Business Licensing Law comes into effect next month. It is intended to significantly improve business licensing and regulation, and strengthen Cayman’s commerce environment for businesses by addressing specific issues raised by licensees and the public in relation to the previous law.
The law was passed in the Legislative Assembly in November 2014 and it will repeal and replace the Trade and Business Licensing Law (2007).
The new law introduces some new definitions.
Micro businesses are defined as a business that employs fewer than five persons, not including the owner; and has an annual gross revenue of CI$250,000 or less.
A small business is defined as a business that employs a maximum of 12 persons, not including the owner; and has an annual gross revenue of up to CI$750,000.
The new law also provides for trade officers who will carry out the regulatory and enforcement tasks. The trade officers will have the rights, powers, privileges and immunities of a constable when carrying out their duties.
The new law introduces some tougher penalties. If a person or a business operates without a proper trade and business licence, a fine of CI$10,000 and/or imprisonment for a year for a first instance can apply. In the case of a second offence, there is a potential fine of CI$20,000 and/or imprisonment for two years. A ticketing system will also be introduced.
For further details about the new law click on this link.