Cabinet approved updated drafting instructions that could allow a moratorium on new Local Companies (Control) licences across trades and businesses.
A fresh push to limit new LCC licences is moving closer after Misryoum learned Cabinet has approved updated drafting instructions for changes to the Local Companies (Control) Act.
The plan would give the government a new regulatory power to declare a moratorium on the grant of LCC licences for any trade or business category if it is considered necessary.. The shift follows momentum in parliament after a private member’s motion in 2024, which Misryoum understands helped set the direction for reform.
This matters because the Local Companies (Control) licensing regime has been a key part of how certain businesses have operated in the Cayman Islands for decades, and any move to slow new licences can quickly reshape who can enter specific markets.
Premier André Ebanks told parliament that while the LCCL approach was introduced in 1971 for a clear purpose, conditions have changed.. He said LCC licences now account for a small share of the overall licensing landscape, but they remain heavily concentrated in areas tied to real estate and property development.
Ebanks pointed to growing pressure on costs and concerns about affordability and access for Caymanians. In this context, he said the existing structure has made it harder for smaller, Caymanian developers to compete and to access opportunities.
The government’s earlier focus, as Misryoum understands it, centred on property. However, drafting was expanded beyond a limited property-sector pause after the motion called for broader enhanced Caymanian ownership requirements alongside a moratorium.
Insight: The broader drafting approach signals that policy makers are trying to keep control of the pace of change, rather than reacting one sector at a time if other categories come under similar pressures.
In his statement, Ebanks said the updated instructions are meant to provide flexibility if other trade or business categories are affected. He described the updated drafting as a practical and timely step to support wider reform and the ability to respond to evolving economic conditions.
He also framed the move as an evolution of legislation: recognising the wisdom of the original framework when the islands had a smaller population and fewer independent capabilities, while arguing that lawmakers now should adjust as Caymanians gain more experience across more trades.
Insight: That framing helps explain why the government is treating the changes as modernization rather than a rollback, and it may influence how businesses prepare for what comes next.
Looking ahead, Ebanks said his ministry will deliver further updates across the business licensing regime, with a focus on practical short-term measures to support micro and small businesses.. He also noted that new five-year licences are available to compliant businesses and said more steps are expected as the process moves forward.