Special Economic Zone
The Cayman Special Economic Zone, or SEZ for short, is a specially designated area that is subjected to different economic regulations compared to other areas within the Cayman Islands. The specific purposes is to attract direct foreign investment and speed up economic growth. A SEZ can accomplish this by offering taxation incentives to international operators to encourage them to relocate and encourage rapid technological advancement.
Cayman’s Special Economic Zones
Cayman has a robust SEZ community that is facilitated directly by the government’s offer of attractive rules governing them and by the strong anti-money laundering measures put in place here.
The Cayman Islands Government is facilitating and encouraging further economic growth and attracting additional international investment through the enactment of the Special Economic Zone (SEZ) Law. This Law, which specifically caters to exempted companies and exempted limited partnerships, creates an alternative licensing regime, as well as a number of additional incentives for entities that have already established, or wish to establish, a physical presence in the Cayman Islands. There are many companies operating in a SEZ framework – most notably within the Cayman Enterprise City.
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There are also large numbers of companies – hundreds actually – operating in places the BritCay House and the Flagship Building. These companies can do business on a truly global scale but with one condition – they MUST not compete in the local market against domestic companies. Work visas are usually expedited for those forming a SEZ with the formation of the whole company usually being able to be done in under a month.
A Cayman Islands SEZ also does not have to pay any duties (Import for example, which is substantial perk) and they will not be liable for any taxes or fees on any of the operations of their businesses. Being a SEZ is to be an extremely streamlined and efficient business that can move at the fast paced speed of global business.
Important Features Of A Cayman Islands SEZ
Cayman Enterprise City makes it extremely easy and efficient for members to become part of the project. Instead of jumping through numerous regulatory hoops and paying a large number of formation costs – businesses in the SEZ simply pay a fee directly to the SEZ. Moreover, if one’s business is in a SEZ, individuals could be exempt from many of the Cayman Islands laws in place for other companies. A SEZ sees favorable treatment with respect to the Customs Laws, Trade and Business Laws (T&B) and the Immigration Law. Imagine the cost savings by not having to go through the full work permit process or pay duty on all the things an office needs to set up and open for business? Key employees can be brought in with ease compared to many other industries in the Cayman Islands.
How Do I Apply To The Cayman Islands Special Economic Zones?
The process of applying to domicile your business in a SEZ is very clearly defined in Cayman. The first thing a business need to deduce is if the “operator” of the zone has physical space for the business that is to be established. If there is adequate space within the zone then there will a temporary acceptance letter provided to the business directly from the zone operator. After the business has secured this temporary letter then they will submit it to the Cayman Islands General Registry Department. It is this Registry that actual provides the company incorporation, provided all the documents are in good standing. After this step is completed the incorporation is given to the SEZ operator. The operator then provides this to the SEZA Secretariat and the decision is made after reviewing all the documents and performance of the necessary due diligence.
Is A SEZ A Good Thing To Have In A Country?
Generally speaking yes a SEZ brings a lot of benefits to a nation – especially one that is relatively small on the world stage. A SEZ brings money to a country as well as many, oftentimes very highly skilled, immigrants. Trickle down in the local economy brings business to supporting businesses, the real estate industry and the economy as a whole. Bringing highly skilled personnel and new technology will, if executed correctly, increase DFI in a nation and stimulate and uplift a country’s economy across the board.
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