Cabinet approved updated drafting instructions that could allow a moratorium on new Local Companies (Control) licences across trades and businesses.
(CNS): Cabinet has approved the preparation of updated drafting instructions to amend the Local Companies (Control) Act to give it the power to make regulations to declare a moratorium on the grant of licences for any trade or business category for which a licence is granted.. Following the successful passage of a private member’s motion brought to parliament in 2024 by McKeeva Bush, the government is planning to end foreign control of multiple businesses, not
just in the property sector, as originally intended, but across the board.. In a statement to parliament on Friday, Premier André Ebanks said that since its introduction in 1971, the LCCL regime had served a purpose, but things had changed.. LCCLs represented only about 2% of the more than 10,000 trade and business licences at the end of 2025, but they are heavily concentrated in the real estate and property development sectors.. Given the pressure
on costs and concerns about affordability and access for Caymanians, these LCCLs have created difficulties for smaller, Caymanian developers to compete and have access opportunities.. With the motion in the parliament calling for enhanced Caymanian ownership requirements and a moratorium on the grant of LCCLs in the property sector, drafting had begun.. The premier explained that it was decided to go beyond the initial draft proposals for a limited moratorium and instead include a general
power to bolster the legislation in case other trade and business categories were impacted.. As a result, the new draft will give Cabinet the power to declare a moratorium on the grant of LCCLs across any trade or business category where it is deemed necessary.. “The updated drafting instructions also represent a practical and timely step, advancing the intent of this NCFC Government and parliament, supporting wider reform, and bolstering our ability to respond to
evolving economic conditions,” Ebanks told his colleagues as he delivered the statement.. “We recognise there was wisdom and vision when this legislation was initially introduced.. At the time, there would have been a recognition that we had a very small population which needed various services and businesses for which we were not yet fully equipped to conduct independently.. “But surely our legislative predecessors would have envisioned that, if this beloved country got to a stage
where our people have greater capability to conduct numerous trades and businesses, then their legislative successors, i.e.. us in this Chamber at present day, would in turn have the vision and the courage to make sensible adjustments to reflect the remarkable reality that Caymanians have gained a wide range of experience and expertise.” Ebanks said that the time had come for reform, and his ministry would be delivering more comprehensive updates to legislation, policy and
procedures across the business licensing regime, with a focus on practical, short-term measures to support micro and small businesses.. He pointed to the new five-year licences now available to compliant businesses and indicated there was more to come.. “The Cayman Islands, now has more than enough talented, qualified, experienced, well-resourced Caymanians who are undoubtedly capable to conduct numerous trade or business categories and the commerce legislation must be brought up-to-date to take account of this
evolution,” he added.