Special Economic Zones Act (2023 Revision)
Summary
Legislation providing for the establishment and operation of special economic zones (SEZs) in the Cayman Islands, offering incentives and exemptions to qualified enterprises.
Sources
Special_Economic_Zones_Act_(2023_Revision).pdf
Last Updated
2026-04-27
The Special Economic Zones Act enables the creation of designated areas where businesses can benefit from a streamlined regulatory environment and specific financial incentives.
The Special Economic Zone Authority
The Act establishes the Special Economic Zone Authority, which is responsible for:
- Identifiying and recommending areas for SEZ designation.
- Processing applications for trade certificates.
- Enforcing compliance with SEZ requirements, including aml-compliance.
- Monitoring the performance of the zones.
Special Economic Zone Enterprises
To operate within an SEZ, a person must hold a valid trade certificate. Key requirements include:
- Fit and Proper: The applicant, its controllers, and beneficial owners must be fit and proper persons.
- Business Focus: The primary purpose of the enterprise must be carrying on business mainly outside the Islands.
- Compliance: Enterprises must comply with the Proceeds of Crime Act and AML regulations. Failure to do so can lead to the revocation of their trade certificate.
Benefits and Exemptions
Enterprises in an SEZ (such as special-economic-zones|Cayman Enterprise City) may enjoy:
- Exemption from the Trade and Business Licensing Act.
- Exemption from the Local Companies (Control) Act.
- Exemptions from certain stamp duties and import duties on consumables (until 2061).
- Streamlined work permit processes for staff.