Guernsey To Offer Limited Liability Partnerships
by Mike Godfrey, Lowtax.net, Washington
14 May, 2014
Guernsey has expanded the range of legal structures available by introducing the Limited Liability Partnership form.
The Limited Liability Partnerships (Guernsey) Law 2013 has received Royal Assent and became effective on May 13, 2014. Registration can be made only through a Guernsey-licensed corporate service provider.
Guernsey law already allows for general partnerships through which all partners are jointly and severally liable, and limited partnerships (LPs), which admit limited liability partners as well as general partners with unlimited liability.
The new LLP is a body corporate with separate legal personality from its members. Partners in an LLP are referred to as members and there is no limit to the number of members, although there must be a minimum of two. Subject to any agreement among the members, a member of an LLP is not liable for the debts of the LLP or any other member of the LLP.
Fiona Le Poidevin, Chief Executive of Guernsey Finance - the promotional agency for the island's finance industry, said: "The introduction of Guernsey LLPs means that our financial services practitioners have another vehicle to use in providing solutions for their client base."
"We see them being used particularly by professional businesses as vehicles for investing globally and as asset holding structures. In addition, it should be noted that the law includes specific provisions for existing Guernsey partnerships to convert to LLP status and that LLPs are able to migrate into and out of Guernsey."
"Practitioners are reporting significant interest in Guernsey LLPs for a wide variety of purposes and we look forward to seeing applications coming into the Guernsey Registry, including from those structures currently domiciled in other jurisdictions but wishing to avail themselves of this new, modern and flexible legislation."
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