Owners and operators of micro and small businesses will continue to pay either no fees, or significantly reduced fees, for trade and business licenses from 1 January 2024 to 31 December 2025, following an extension of the Small Business Incentive Programme (SBIP).
“When we think of how many of our everyday business transactions are done with micro and small businesses, we’re reminded of how important they are,” said the Minister for Financial Services and Commerce, the Hon. André Ebanks. “This made extending the SBIP an easy decision for Cabinet, because everyone benefits.”
To continue the SBIP, Cabinet approved the Trade and Business Licensing (Amendment of Schedule) (Temporary Reduction of Fees) Regulations, 2023 on 11 December 2023.
Micro businesses are defined as having fewer than five employees, not including the owner ; with an annual gross revenue of CI$250,000 or less. Small businesses are defined as employing a maximum of 12 persons, not including the owner; with an annual gross revenue of up to CI$750,000.
In addition to meeting one of the definitions above, SBIP criteria requires:
• the business to be independently owned and operated, with the owner having close control over operational decisions;
• the business to be for profit; and
• owners to immediately inform the Trade and Business Licensing Board of any changes to the business that would alter its eligibility.
Reductions for small businesses are based on business location.
The chart shows the waivers for micro businesses, which applies in all locations; and the reduction percentages and locations for small businesses.
|
Location of trade or business
|
Type of business
|
Fee reduction
|
|
George Town
|
Micro business
Small business
|
100%
50%
|
|
West Bay
|
Micro business
Small business
|
100%
50%
|
|
East End
|
Micro business
Small business
|
100%
75%
|
|
North Side
|
Micro business
Small business
|
100%
75%
|
|
Bodden Town
|
Micro business
Small business
|
100%
75%
|
|
Little Cayman
|
Micro business
Small business
|
100%
50%
|
|
Cayman Brac
|
Micro business
Small business
|
100%
50%
|
Businesses that do not qualify for the SBIP are providers of auditing services, financial services firms other than insurance agents, and exempted companies.
Minister Ebanks said that about 8,200 micro and small businesses have taken advantage of the programme to date. He noted that the estimated revenue waiver of CI$1 million will not impact the Government’s forecast financial results, as the SBIP is already factored into the 2024 and 2025 budget.
In August 2014 Cabinet approved the SBIP for a one-year period, and successive Cabinets have continued the programme without interruption.
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