Various fees charged to companies operating in the Cayman Islands under the Companies Law (2009) will increase by next month.
The fee hikes were approved last week by a majority of Legislative Assembly members.
According to the Companies Law, all businesses filing a memorandum of association in Cayman are required to pay fees to the government. All those fees will increase by 1 January, 2010.
Annual association fees for non-resident companies will go from $400 to $575 for those with less than $42,000 in registered capital, and $565 to $815 per year for those with more than $42,000 in registered capital.
For exempted companies, those yearly fees will increase proportionally depending on how much capital they have registered in Cayman. For those with less than $42,000 in registered capital, association fees will go from $470 to $600. The largest companies, with registered capital exceeding $1.64 million, annual fees will go from $1,968 to $2,468.
All other companies will pay between $300 and $500 each year for association fees.
Registration fees for companies will also increase according to their amount of registered capital. Those registration fees will be the exact same as those charged for association fees in the different categories.
Companies are also required to file notice of increase in their capital each year, if that has occurred. The somewhat complex system that existed under the previous Companies Law has been erased and replaced with a flat fee of $500.
The cost of filing documents and obtaining copies of records from the registrar of companies will also increase under the amended Companies Law.
In addition to increased fees for registrar of companies’ services, government has amended the Public Recorder Law to hike fees paid for public recorder services. Those fees will be $100 for the recording of each document of one or more pages, and $50 for each document copy that is certified the public recorder.
Lawmakers have also increased fees for various licensing and record-keeping functions performed by the Cayman Islands Monetary Authority.
In most cases, those fees have changed from $200 to $400 annually. The fees have also been expanded to include many categories that did not exist under the previous Monetary Authority Law.
Fees are charged for items such as letters confirming a company’s licenced status, approval of appointments of new directors for licensees, fee for surrender of licence or registration for a company, and applications for variation of the terms of a licence.
Legislators also approved measures that would allow the transfer of ‘excess capital’ from the Monetary Authority to the general fund of the Cayman Islands government under certain circumstances.
According to the law, transfers would only occur where a variation of the paid up portion of authorised capital of the Monetary Authority results in a reduction of the paid up portion. The government expects to earn some $10 million in this year’s budget from such a transfer.