Jersey To Launch Limited Liability Company Form
by Mike Godfrey, Lowtax.net, Washington
17 September, 2018
Jersey has approved a law that would enable the creation of limited liability companies, in a bid to attract business from the US.
Geoff Cook, the CEO of Jersey Finance, the island's financial services promotional agency, said the move will attract business from the US in particular. He said: "As a forward-thinking jurisdiction, Jersey is keen to support the growth the US is currently experiencing and has recognized the demand amongst US institutions and fund managers for a vehicle that can meet their cross-border requirements. We are focused on supporting their needs, having announced earlier this year our intention to open an office in the US in the near future."
"In the US, LLCs are a structure of choice for alternative investment funds, with US advisers and managers being familiar with LLC structures and aware of the benefits they can provide in terms of tax transparency. With that in mind, we are confident that the Jersey LLC can provide an attractive proposition for US-based hedge fund managers, particularly in operating master-feeder structures. We anticipate strong growth in this area, whilst we also believe the LLC can be a really positive addition to our suite of vehicles more widely to enable better international structuring."
The Jersey Government pointed out that the LLC form combines the flexibility and privacy of a partnership with the protective limited liability of a company. It said it anticipates that the introduction of a Jersey LLC will give US advisers, investors, businesses, and fund managers a familiar option for cross-border structuring.
The new Jersey LLC law follows new limited liability partnerships (LLPs) legislation that came into force in Jersey in August. The Government said the new Limited Liability Partnerships (Jersey) Law 2017 represents a major overhaul of Jersey's existing LLP legislation, originally introduced in 1997.
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