CIMA License in the Cayman Islands

Banking Licenses

Any individual or company looking to conduct banking business in and around the Cayman Islands will have to apply for a CIMA banking license. The Cayman Islands Monetary Authority (CIMA) offers different types of banking licenses depending on the location of the business activity.

The CIMA banking license is of three types: Class A for domestic and offshore businesses within the country, Class B for offshore banking business, and the Restricted Class B License, which is similar to the Class B license, except that it has restrictions on clients.

Professional Director License

In the Cayman Islands, the professional directors working in the investment funds regulated under the Mutual Funds Act or companies registered under the Securities Investment Business Act, as excluded persons, are required to apply for a license from CIMA.

This licensing system has been introduced by the Director Registration and Licensing Act (DRLA). The individual must obtain the license before taking on the responsibilities. To register, you will need to pay an initial application fee of US$170, including a registration fee of US$685.

Corporate Director License

A corporate body that is a company working as a director for covered entities will need to register and apply for a corporate director license in the Cayman Islands through CIMA. The licensing process for a corporate director is complex and requires a higher fee and charges.

CIMA will also require the corporate entity to provide documents and check if they are a fit and proper person. If approved by CIMA after the internal reviews, you will receive your corporate director license, depending on the complexity of the application.

Investment Fund Licenses and Registrations

To register a fund with the Cayman Islands Monetary Authority (CIMA), you will have to submit an application form with the supporting documents through the CIMA’s website. Ensure that you submit the right form and pay the mandatory application fee of US$366 and registration fee of US$4,270.

Additionally, ensure that the fund is registered within 21 days of accepting your first investor and before you accept any funds or capital contributions. To incorporate a private fund company in the Cayman Islands, you will need at least two directors.

Company Management License

The company management license is for individuals or companies looking to conduct business activities as a company management business in the Cayman Islands, issued by the Cayman Islands Monetary Authority (CIMA).

A company management licensee will have to maintain a minimum net worth of $30,487.81 or higher if mandated by the CIMA. You will also need a minimum of two directors and inform CIMA of any changes to the registered office. Additionally, you will need to obtain CIMA’s approval before the transfer of the licensee’s shares.

Company Management License

The company management license is for individuals or companies looking to conduct business activities as a company management business in the Cayman Islands, issued by the Cayman Islands Monetary Authority (CIMA).

A company management licensee will have to maintain a minimum net worth of $30,487.81 or higher if mandated by the CIMA. You will also need a minimum of two directors and inform CIMA of any changes to the registered office. Additionally, you will need to obtain CIMA’s approval before the transfer of the licensee’s shares.

Digital Asset Companies License

The Virtual Asset Service Providers (VASPs) operating in the Cayman Islands will have to apply for a digital asset company license and register with CIMA. The first step is the registration of companies involved in virtual asset services, such as the transfer of virtual assets, exchange between virtual assets and fiat currencies, and issuance of new virtual assets for the public.

The process of licensing is for digital asset companies that have a higher risk or require additional oversight, such as operating a virtual asset trading platform and providing virtual asset custody services.

Fit and Proper Person

The individual or company applying for the CIMA license in the Cayman Islands will have to ensure that all the members of the management pass the fit and proper test. The test will involve verifying the individuals on integrity, honesty and reputation.

Corporate Governance

CIMA has rules on corporate governance for companies, which are a mandatory requirement when applying for the license. The corporate governance will require a framework that is according to the size of your company and will need a mandated board self-assessment.

Minimum Paid-up Capital

The CIMA license in the Cayman Islands has a minimum capital requirement for both restricted and unrestricted licenses. For a new unrestricted license, the initial capital must be a minimum of CI $400,000 and for a restricted license, the initial minimum capital requirement is CI $20,000.