The Trade and Licensing Board is advising foreign companies that advertise for Caymanian participation in their business ventures to direct those potential local investors to the board.
The board issued a statement Friday, quoting section 11 of the Local Companies (Control) License Law, known as the LCCL, which states, among other conditions, that the board must consider efforts made by the foreign companies to obtain Caymanian participation in business ventures before granting an LCCL.
“Therefore, as proof of seeking Caymanian participation, the Board requires foreign investors to publish the ads in the local press. As of Sept. 1 2016, the ads must instruct Caymanians to submit a separate copy of their letter of interest in the business venture directly to the Board,” the release states.
The board advised that all LCCL advertisements must indicate that letters from Caymanians should be copied to the Trade and Business Licensing Board, c/o the Department of Commerce and Investment, Government Administration Building, 133 Elgin Avenue Suite 126, Grand Cayman, Cayman Islands.
The board also advised that when submitting applications to the Board, foreign investors must include copies of the two local newspaper ads, published in accordance with the law, that solicited Caymanian participation.
According to the board, the procedural changes to the LCCL application process “will encourage compliance with the law.” The board added that applications with incorrect ads will not be considered.
LCCL applications must be submitted in person at the Business Licensing Counter, on the first floor of the Government Administration Building, Mondays to Fridays, between 9 a.m. and 4 p.m.
In addition to the two newspaper ads, applications must be accompanied by due diligence such as a police clearance, copies of passports, references, and the relevant fees.