Guide to Establishing a Tourist Accommodation Business by jim.i.am

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									   Investor Roadmaps – Business Licensing Series




Guide to Establishing a
Tourist Accommodation
        Business
____________________________
      In the Cayman Islands




               Last Updated: 1 July 2006
Introduction
This document is intended to serve as a guide to establishing a tourist accommodation business
in the Cayman Islands. Given varying business models that could be applied to this type of
establishment, this document should only be taken as a general guide to the basic procedures
involved.

A distinction is made between core procedures and those that are dependent on parameters of
the business proposal. Some steps listed are indicated as ‘if applicable’ to show a distinction
between steps that may only apply to certain business models in this sector.

It should further be noted that the information presented is only current as of the date shown.
Please contact the Cayman Islands Investment Bureau to discuss how these procedures apply in
the context of your business proposal and for updates on current regulations affecting your
business.




                                      t: 345 945.0943
                                      f: 345 945.0941
                                      e: info@investcayman.gov.ky




                                      Last Updated: 1 July 2006
Process Overview
There are up to 7 steps needed to license a tourist accommodation:

   1)   Submit an application for a license to operate a tourist accommodation
   2)   Arrange for Fire Department to inspect accommodation
   3)   Arrange for Department of Environmental Health to inspect accommodation
   4)   Obtain a copy of the company’s Certificate of Incorporation (if applicable)
   5)   Obtain Police Clearance Certificate (if applicable)
   6)   Submit an application for a Local Companies (Control) Licence (if applicable)
   7)   Submit application for liquor license (if applicable)

The overall minimum time for this process to be completed (assuming that the accommodation is
fully prepared and compliant) is 15 business days. The overall application cost will depend on
the size of the accommodation and the type of facilities offered, but at a minimum, will be
CI$575.


1. Arrange DoT                   Tourism
inspection and                   Department
apply for licence                inspection


                                                                  Application
2. Arrange Fire                  Fire Department
                                                                  reviewed by Hotel
Inspection                       inspection
                                                                  Licensing Board



3. Arrange DEH                   Environmental
Inspection                       Health inspection




4. Obtain a                                                       Application
                                 6. LCCL
Certificate of                                                    reviewed by TBL
                                 application
Incorporation                                                     Board


5. Obtain a police                                                Application
                                 7. Liquor licence
clearance                                                         reviewed by Liquor
                                 application
certificate                                                       Licensing Board




                                      Last Updated: 1 July 2006
Step 1:            Application for a license to operate a tourist
                   accommodation
All tourist accommodations established in the Cayman Islands require an annual licence from the
Hotels Licensing Board and regular inspection of the accommodation. The Department of
Tourism acts as the administrative agency dealing with applications and the requirements under
law.

Governing Legislation        Tourism Law (1995 Revision); Tourism Regulations (2002 Revision);
                             Labour (Gratuities Distribution) Regulations (1992); Hotel Keepers
                             Liability Law (1997 Revision)

Submission Requirements         Completed application form
                                Appropriate fee
                                Request for inspection

Application Cost             CI$250 for accommodations with 10 bedrooms and under. An
                             additional CI$25 per bedroom is required for accommodations with
                             greater than 10 bedrooms.

                             Applications to renew the hotel licence in the category of “Hotel” must
                             be submitted to the Hotel Licensing Board by the 1st day of October.
                             Licence expires on the 31st day of October each year. Applications to
                             renew a licence in the category of “Apartment”, “Guest House”, or
                             “Cottage Colony” must be submitted to the Hotel Licensing Board by the
                             1st day of August. Licence expires on the 31st day of August each year.


Duration of Step             15 - 20 business days

                             Completion of this step is dependent on the submission of favourable
                             inspection reports generated in steps 2 and 3 and approval from the
                             Hotel Licensing Board.


Key Contacts                 Janet Holness
                             t: 345 244.1255 e: jholness@caymanislands.ky
                             Tina O’Connor
                             t: 345 244.1266 e: toconnor@caymanislands.ky
                             Carol Britton (Sister Islands Inspector)
                             t: 345 948.1649 e: cbritton@caymanislands.ky

Additional Notes                Tourist accommodations are required by law to charge a 10% Tourist
                                Accommodation Tax (TAT) for tourists accommodated, and remit the
                                same with the appropriate documentation to the Department of
                                Tourism no later than 28 days after the end of the month in which
                                accommodation and services were provided.
                                A monthly tourist accommodation occupancy form must be
                                completed monthly and forwarded to the Department of Tourism no
                                later than the 15th of the following month.
                                Accommodations must display a copy of section 3 of the Hotel
                                Keepers Law (1997 Revision) in a conspicuous part of the main hall
                                or entrance to the hotel.




                                     Last Updated: 1 July 2006
Step 2:            Arrange for Fire Service Inspection
The Fire Department is the authority on Fire Safety in the Cayman Islands.                  All tourist
accommodations are expected to meet and maintain the standard outlined by law.

Governing Legislation      The Fire Brigade Law (1999 Revision); Fire Code (1997)

Submission Requirements    None. In rare cases, additional information may be required for unfamiliar
                           fire systems.

Application Cost           None

Duration of Step           5 business days

                           The time taken depends on the size of the establishment and previous
                           inspections carried out during construction.

Key Contacts               Mr. Doorly McLaughlin, Fire Prevention Officer
                           t: 345 949.2276 f: 345 949.0268 e: doorly.mclaughlin@gov.ky
                           Mr. Curtis Powell
                           t: 345 916.3992 e: curtis.powell@gov.ky
                           Fire inspections in the Sister Islands: 948-1245

Additional Notes           Inspections will be carried out annually, prior to the renewal of the hotel
                           licence or the liquor licence, between June - October. Inspections can also
                           be carried out on an as needed basis.




                                     Last Updated: 1 July 2006
Step 3:            Arrange for Environmental Health Inspection
The Department of Environmental Health (DEH) inspects all types of environmentally related
businesses such as restaurant and bar facilities, laundries, spas, Jacuzzis, etc. to ensure
conformity to environmental public health standards.

Governing Legislation      The Public Health Law (2002 Revision); Public Health (Garbage and
                           Refuse Disposal) Regulations (2003 Revision); Public Health
                           (Miscellaneous Fees) Regulations (2004 Revision).

Submission Requirements    Complete application form for environmental health related business

Application Cost               CI$25 administration fee
                               Garbage fees are dependent on the number of bedrooms on
                               premises:
                               Guest house
                               1 to 4 bedrooms             CI$300 per annum
                               5 to 8 bedrooms             CI$500 per annum
                               9 or more bedrooms          CI$1,000 per annum

                               Hotel
                               10 to 19 bedrooms                 CI$1,400
                               20 to 39 bedrooms                 CI$2,800
                               40 to 60 bedrooms                 CI$4,200
                               61 to 100 bedrooms                CI$5,600
                               101 to 150 bedrooms               CI$7,000
                               151 to 200 bedrooms               CI$8,400
                               201 to 250 bedrooms               CI$9,800
                               251 to 300 bedrooms               CI$11,200
                               301 to 350 bedrooms               CI$12,600
                               351 to 400 bedrooms               CI$14,000
                               Over 400 bedrooms                 CI$15,400

                               Garbage fees are paid on a prorated basis and are due at the time of
                               application.
                               Premises with less than 10 bedrooms are classified as guest houses.
                               Additional costs include skip rental and a fee based on the frequency
                               of garbage collection.

Duration of Step           3-5 business days

                           The actual inspection lasts 2–3 hours depending on the size of the
                           establishment.

Key Contacts               Mr. Gideon Simms, Food Hygiene & Safety Officer
                           t: 345 949.6696 f: 345 949.4503 e: gideon.simms@gov.ky
                           Mr. Derrick Williams
                           e: derrick.williams@gov.ky
                           Environmental Health Inspections Sister Islands
                           t: 345 948.2321 e: ehodeh@candw.ky

Additional Notes           The hotel establishment is not informed of inspection times and dates.




                                     Last Updated: 1 July 2006
Step 4:            Obtain copy of Certificate of Incorporation
Copies of a company’s Certificate of Incorporation can be obtained from the General Registry
Department.

Governing Legislation       Companies Law (2004 Revision)

Submission Requirements         Letter to Registry requesting copy of Certificate of Incorporation.
                                Appropriate fee.

Application Cost                CI$82 – regular service or
                                CI$107– express service

Duration of Step                3-4 business days – regular service
                                1 business day – express service

Key Contacts                Ms. Eziethamae “Zeta” Bodden
                            t: 345 244.3404 e: zeta.bodden@gov.ky

Additional Notes            Companies with local registered office or local agent must make request
                            for certificate copy through them.




                                     Last Updated: 1 July 2006
Step 5:            Obtain Police Clearance Certificate                   (if applicable)

Police clearance certificates can be obtained from the Royal Cayman Islands Police Service.

Governing Legislation       Criminal Procedures Code (1995 Revision)

Submission Requirements           Application form
                                  Valid passport

Application Cost            $10

Duration of Step            1 business day

                            Certificate must be collected within 24 hours of filing application.

Key Contacts                Ms. Dorothea Shaw
                            Records, RCIP
                            t: 345 244.3019 f: 345 929.2978




                                       Last Updated: 1 July 2006
Step 6: Submit application for a Local Companies (Control)
         Licence (if applicable)
If Caymanian shareholders or directors account for less than 60% beneficial-ownership, then an
additional licence the Local Company (Control) Licence, must be applied for.

Governing Legislation       The Local Companies (Control) Law (1999 Revision); The Local
                            Companies (Control) Regulations (1998 Revision)

Submission Requirements         Completed LC(C)L application form.
                                Application fee.
                                A cover letter providing details of the proposed business and
                                addressing any one or more of the matters set out in section 11(4) of
                                the Local Companies (Control) Law (1999 Revision).
                                Personal reference, financial reference, Police Clearance Certificate,
                                and a copy of the picture page of the passport for every individual
                                non-Caymanian director or shareholder.
                                Verification of status if a publicly traded company.
                                If applicant is a company - Certificate of Incorporation, Memorandum
                                and Articles of Association, Return of Shareholdings, Register of
                                Directors / Officers / Members (including nationality).
                                Copies of the relevant advertisements (in an effort to obtain
                                Caymanian participation).

                            Notices seeking Caymanian participation in the business, for which the
                            LC(C)L licence is being requested, must be advertised twice in a local
                            newspaper and the notices or ads must be spaced at least 7 to 10 days
                            apart.

Application Cost            CI$2,500

Duration of Step            30 business days

                            The application for the LC(C)L licence must be submitted no earlier than
                            5 working days after the last notice for Caymanian participation has been
                            properly advertised.

Key Contacts                Martina Nembhard, Manager, Trade & Business Licensing Board
                            t: 345 244.2062 e: martina.nembhard@gov.ky

Additional Notes            The LC(C)L must be renewed every 12 years from anniversary of the
                            licence date.




                                       Last Updated: 1 July 2006
Step 7:            Apply for Liquor Licence (if applicable)
All premises engaging in the sale of liquor, music and dancing are required to have a Liquor
Licence, which is governed by the Liquor Licensing Board.

Governing Legislation        The Liquor Licensing Law and the Liquor Licensing (Fees) Regulations
                             (1999 Revision); The Music & Dancing (Control) Law (1995 Revision);
                             Permitted Hours Order (1999 Revision); Sunday Trading Law (2003
                             Revision)

Submission Requirements         Completed application form and cover letter detailing proposed
                                business
                                Application fee.
                                Police Clearance Certificate.
                                Photo identification.
                                Proof of Residency (Status or Work Permit).
                                Two written character references.
                                Copy of hotel’s building plans (if the application is being filed before
                                the hotel is built).

Application Cost                Annual fee: CI$2,000 for hotels with 20 rooms or less; or CI$4,800
                                for hotels with over 20 rooms
                                Annual permission for Music & Dancing on premises: CI$100
                                Temporary licence: CI$1,000

                                Liquor license fees are 50% less in the Sister Islands.
                                Licences expire annually on the 30th day of September

Duration of Step             2-3 business days

                             The Liquor Licensing Board meets on a quarterly basis. Applications are
                             reviewed quarterly (March, June, September, and December). In
                             addition to the quarterly licensing sessions, the Board shall also meet at
                             any time and place for the grant of a temporary license to permit the
                             sale of liquor.

Key Contacts                 Ms. Marva Scott-Dunbar, Secretary of Liquor Licensing Board
                             t: 345 946.5446 extn 5 e: marva.scott-dunbar@gov.ky
                             Mr. Dave Tatum, Executive Secretary, Liquor Licensing Board (Sister
                             Islands)
                             t: 345 948.2222 e: dave.tatum@gov.ky
                             Mr. James Tibbetts, Chairman (Sister Islands)
                             t: 345 916.8642

Additional Notes                The same applicant cannot be issued a temporary licence after
                                receiving a temporary licence for 2 years.
                                Liquor licences as well as Music & Dancing licences are issued to
                                individuals not companies. It is the duty of every license holder to
                                procure the compliance of his servers, agents and other persons
                                under his control with the Liquor Licensing Law. Licensees shall be
                                equally guilty with such persons who break the Law whether the
                                licensee was or was not present at the time of the offence.
                                Applicants are required to appear in person during the review of
                                his/her licence application.


                                     Last Updated: 1 July 2006

								
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