OFFICIAL GUIDE TO INVESTING

IN THE CAYMAN ISLANDS

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 world’s 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 per

capita incomes in the world. A flexible immigration policy and a high literacy rate contribute to the country’s successful

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

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 point

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

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 Bureau’s 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
Contents ::
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
For a full listing of all organisations that contributed to this guide,
visit the ‘Useful Contacts’ section on page 30
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 Cayman—with George Town, the capital, home to

23,275 residents—followed 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.

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 north of the equator, the Cayman Islands enjoy a favourable climate

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

from 85F° to 90°F (29C° to 32°C).

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 members—the 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.
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, it’s not surprising that the Cayman Islands is a thriving centre for international finance.
Cayman’s 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 world’s 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. Internal
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.
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 CSX’s 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.
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 of
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 property 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 of

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.
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 of
registration, the address of the registered office and the company’s 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 after
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 don’t 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 don’t need to include the word ‘limited’ after their
names. After registration and after delivering their annual return each January, a fee is payable based on the level of
capitalization:
 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

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 don’t 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 partnerships 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.
7. Foreign Companies – These are companies incorporated outside the Cayman Islands that carry 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 Partnerships.

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.
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 Department of Environmental
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.
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 Registrar
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 renewal,
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.
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 Department of
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 driver’s 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 employer’s 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.
Labour Regulations

Work Permit Requirements ::

Non-Caymanians or people not legally and not ordinarily resident in the Cayman Islands aren’t 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 can’t 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.
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 employee’s 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 don’t 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.
Infrastructure
Transportation ::

Roads Infrastructure
The National Roads Authority (NRA) is responsible for the planning, construction and maintenance of Grand
Cayman’s 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 Capital,
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 foot
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/dirt runway
and a domestic airline terminal.
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.
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 assortment 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 Teu’s 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, Ship’s 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.
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 Government’s 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 certified 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 CISR’s 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 world’s 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.

CUC’s 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. CUC’s projections for power
generation growth are based mainly on historical growth trends and planned major commercial developments.

The company’s 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.
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 Authority’s 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 Authority’s 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 plant’s production
capacity is 150,000 US gallons per day (gpd).

The Authority’s 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 plants—two 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.
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 of
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 part of the Universal Postal Union’s
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.
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 legal
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 driver’s 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 certificate is renewable. Persons meeting the criteria for the ‘entrepreneurs or investors’ category will
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.
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. Matthew’s 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.
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.
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 country’s 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. CIREBA’s multiple listing service coordinates the listings and sales efforts
of its member companies and agents, and over US$500 million of property 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 property 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 department’s 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, aerial
photography and planning zone information. Bespoke maps are available on request.
The Cayman Islands Investment Bureau (CIIB)

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

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 for

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.

CIIB Services

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

environment.The bureau’s 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 country’s 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 will

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.

Useful Statistics

Table 1: Surface Area of the Cayman Islands

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

Table 2: Economic Indicators

2001 2002 2003

GDP at current market 1,482.3 1,546.0 1,603.2
priceS ($M)
Real GDP Growth(%) 0.6 1.7 2.0
Per Capita GDP($) 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

Table 3: Social Indicators

2001 2002 2003

Population - Year End 41,900 43,004 44,144
Proportion of Caymanians 53 58 59
(%)
Student Staff Ratio (Re- 11.7 12.2 12
ception to Secondary)
Doctors per 1,000 year 1.9 2.2 1.7
end population

Table 4: Merchandise Trade (CI$M)

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
Table 5: Financial Services

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 542 600 644
(Captives)

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 7,254

Table 6: Tourism

2001 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

Table 7: Utilities Consumption

2001 2002 2003

Jan-Dec Jan-Dec Jan-Dec
Water
Water Consumption (US millions 1,069.2 1,056.1 1,220.8
of gallons)

Electricity
Electricity Usage (MWh) 407.0 425.6 444.3

Telecommunications
Telephone/Fax Paid Minutes 40.3 39.7 36.3
(millions)
Internet Lines 8,660 9,181 9,909
Telephone Lines 31,580 33,200 32,967
Table 8: Port & Air Service Statistics

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

Useful Contacts
Cayman Islands Investment Bureau
Main Office
Cayman Corporate Centre,
Hospital Rd. 1st Floor
PO Box 10087 APO
Grand Cayman, Cayman Islands
Ph: (345) 945-0943
Fax: (345) 945-0941
Email: info@investcayman.gov.ky
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) 889-9009
Fax: (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... Economics & Statistics Office
4th Floor, Elizabethan Square – Phase IV
New York Office Shedden Rd., George Town
3 Park Avenue Grand Cayman, Cayman Islands
39th Floor Tel: (345) 949-0940
New York, NY 10016 Fax: (345) 949-8782
Tel: (212) 889-9009 Email: info.eso@gov.ky
Fax: (212) 889-9125 Website: www.eso.ky
Houston Office Postal Department
Two Memorial City Plaza General Post Office
820 Gessner George Town
Suite 1335 Grand Cayman, Cayman Islands
Houston, TX 77024 Tel: (345) 949-2474
Tel: (713) 461-1317 Fax: (345) 945-1246
Fax: (713) 461-7409
Immigration Department
Chicago Office Chief Immigration Offices
One Lincoln Centre PO Box 1098 GT
18W140 Butterfield Road Grand Cayman, Cayman Islands
Suite 920 Tel: (345) 949-8344
Oakbrook Terrace, IL 60181 Fax: (345) 949-8486
Tel: (630) 705-0650 Website: www.gov.ky/immigration
Fax: (630) 705-1383
Department of Employment Relations
Canada Office PO Box 10727 APO
234 Eglington Avenue East Royal Plaza, Cardinal Ave.
Suite 306 Tel: (345) 945-3114
Toronto, Ontario, Canada M4P 1K5 Fax: (345) 945-3115
Tel: (416) 485-1550 Website: www.employmentservices.gov.ky
Fax: (416) 485-7578
In Canada: 1-800-263-5805 Planning Department
P.O. Box 1036 GT
United Kingdom & Continental European Grand Cayman, Cayman Islands
Regional Office Tel: (345) 769-7526
6 Arlington Street Fax: (345) 925-5011
London SW1 1RE Email: planning.dept@gov.ky
Tel: +44 (0) 20 7491-7771 Website: www.planning.gov.ky
Fax: +44 (0) 20 7409-7773
Website: www.caymanislands.co.uk Department of Environment
Marco Giglioli Centre
580 North Sound Road
Government Departments and PO Box 486 GT
Statutory Authorities Tel: (345) 949-8469
Fax: (345) 949-4020
Agriculture Department Email: DoE@gov.ky
PO Box 459 GT Website: http://doe.8m.com
Lottery Rd., Lower Valley
Department of Environmental Health
Grand Cayman, Cayman Islands Marco Giglioli Centre
Tel: (345) 947-3090 580 North Sound Road
Fax: (345) 947-2634 PO Box 1820 GT
Email: cavo@candw.ky Tel: (345) 949-6696
Website: www.gov.ky Fax: (345) 949-4503
Email: EnHealth@candw.ky
Registrar of Companies Cayman Islands Shipping Registry (CISR) Cayman Islands Chamber of Commerce
3rd Floor Kirk House Building PO Box 1000GT
Elizabethan Square Fl. PO Box 2256 2nd Fl. MacDonald Square
Grand Cayman, Cayman Islands Grand Cayman, Cayman Islands Fort Street, George Town
Tel: (345) 925-8812 Tel: (345) 949-8831 Grand Cayman
Fax: (345) 949-0969 Fax: (345) 949-8849 Tel: (345) 949-8090
www.gov.ky www.caymarad.org Fax: (345) 949-0220
Email: info@caymanchamber.ky
Lands and Survey Department Information & Communications
Government Administration Building Technology Authority Cayman Islands Company
Elgin Avenue PO Box 2502 GT Managers Association
Grand Cayman, Cayman Islands Grand Cayman, Cayman Islands c/o International Management
Tel: (345) 949-7900 Tel: (345) 945-8283 Services (IMS) Ltd.
Fax: (345) Fax: (345) 945-8284 PO Box 61GT
Website: www.gov.ky Email: david.archbold@icta.ky Harbour Centre, Harbour Drive
Website: www.icta.ky Grand Cayman, Cayman Islands
Cayman Islands Monetary Authority Tel: (345) 949-4244
Elizabethan Square Utility Companies Fax: (345) 949-8635
PO Box 10052 APO Email: ims@candw.ky
Grand Cayman, Cayman Islands Caribbean and Utilities Company (CUC)
Tel: (345) 949 -7089 PO Box 38 Cayman Islands Financial Services
Fax: (345) 949-2532 Grand Cayman, Cayman Islands Association (CIFSA)
www.cimoney.com.ky Tel: (345) 949-5200 PO Box 11048 APO
Fax: (345) 949-5203 Grand Cayman, Cayman Islands
Cayman Islands Stock Exchange Email: info@cuc.ky Tel: (345) 946-6000
Elizabethan Square www.cuc-cayman.com Fax: (345) 946-6001
PO Box 2408 GT Email: info@caymanfinances.com
Grand Cayman, Cayman Islands Cayman Water Company Ltd. Website: www.caymanfinances.com
Tel: (345) 945-6060 PO Box 1114
Fax: (345) 945-6061 Grand Cayman, Cayman Islands Cayman Islands Fund
www.csx.com.ky Tel: (345) 945-4277 Administrators Association
Fax: (345)945-4191 c/o CITCO Fund Services
Civil Aviation Authority Email:info@cwco.com PO Box 31106 SMB
of the Cayman Islands www.cwcm.com Safehaven Corporate Centre
P. O. Box 10277 APO Grand Cayman, Cayman Islands
Units 3 & 4 Cayman Grand Harbour Water Authority of Cayman Tel: (345) 914-8476
Grand Cayman, Cayman Islands PO Box 1104 Fax: (345) 949-3877
Tel: (345) 949-7811 Grand Cayman, Cayman Islands Email. nheck@citco.com
Fax: (345) 949-0761 Tel: (345) 949-6352
Email: civil.aviation@caacayman.com Fax: (345) 949-0094 Cayman Islands Law Society
Website: www.caacayman.com PO Box 10390 GT
Major Trade and Industrial Grand Cayman, Cayman Islands
Port Authority of the Cayman Islands Organizations in the Cayman Islands Tel: (345) 949-8066
Port Authority Building Fax: (345) 949-8080
Harbour Drive Cayman Islands Bankers Association Email: charles.jennings@maplesandcalder.com
PO Box 1358 GT PO Box 676GT
Grand Cayman, Cayman Islands Harbour Centre, Harbour Drive Cayman Islands Society of
Tel: (345) 949-2228/2055 Grand Cayman Professional Accountants
Fax: (345) 949-5820/5685 Tel: (345) 949-0330 c/o Ernst and Young
www.caymanport.com Fax: (345) 945-1448 PO Box 510 GT
Email: ciba@candw.ky One Capital Place, Shedden Road
Customs Department Grand Cayman, Cayman Islands
H.M. Customs Headquarters Tel: (345) 914-1444
Airport Road Fax: (345) 949-8529
PO Box 898 GT Email: rohan.small@ky.ey.com
Grand Cayman, Cayman Islands
Tel: (345) 949-4579/2473
Cayman Islands Real Estate
Brokers Association (CIREBA)
PO Box 1977 GT
Crighton Building, Crewe Road
Grand Cayman, Cayman Islands
Tel: (345) 949-7099
Fax: (345) 949-6819
Website: www.cireba.com

Caymanian Bar Association

c/o Walkers
PO Box 265 GT
Walkers House, 87 Mary Street
Grand Cayman, Cayman Islands
Tel: (345) 914-4229
Fax: (345) 814-8229
Email: wpanton@walkers.com

Cayman Islands Compliance Association

c/o Maples and Calder
PO Box 309 GT
Ugland House, South Church Street
Grand Cayman, Cayman Islands
Tel: (345) 949-8606
Fax: (345) 949-8080
Email: martin.livingston@maplesandcalder.com

Cayman Islands Society of Financial Analysts

c/o GLG Partners Services Limited
PO Box 2427 GT
Grand Cayman, Cayman Islands
Tel: (345) 946-2905
Email: linford@candw.ky

Insurance Managers’ Association of Cayman

PO Box 10552 APO
Grand Cayman, Cayman Islands
Tel: (345) 949-7988
Fax: (345) 949-7849
Email: seamus.tivnan@marsh.com
Website: www.caymancaptive.ky

National Airline

Cayman Airways Ltd.

Corporate Headquarters
233 Owen Roberts Dr.
PO Box 10092 APO
Grand Cayman, Cayman Islands
Tel: (345) 949-8200
Fax: (345) 949-7607
Email: customerrelations@caymanairways.net
Website: www.caymanairways.com