Guernsey introduces LLPs
Guernsey will start accepting applications for Limited Liability Partnerships (LLPs) from midnight on 13 May, which means financial services providers using the jurisdiction can offer an additional type of vehicle to investors.
Fiona Le Poidevin (pictured), 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.”
Guernsey first allowed the concept of limited partnerships in 1995 – which became widely used for structuring collective and private investment vehicles as an alternative to companies or ‘unit trusts’.
The new law providing for LLPs means that the partnership can be structured with the LLP as a body corporate that is legally seperate from members, and with unlimited capacity. Partners in an LLP are ‘members’, and there is no legal limit to the number of members it can have. A member is not liable for the debts of the LLP or any other member.