Draft legislation was recently published to introduce the limited liability partnership (LLP) as a new partnership vehicle in the Cayman Islands. The new LLP is expected to be popular with professional services firms and the private equity industry. It is a welcome addition to the existing range of vehicles available in the Cayman Islands.
The Limited Liability Partnership Bill, 2017 provides for the formation, registration and operation of an LLP as an entity with limited liability and legal personality separate from its partners (distinguishing it from the popular Cayman exempted limited partnership, which is not a separate legal entity). An LLP will be able to be formed to carry on a business for any lawful purpose, by at least two partners, with no Cayman residency requirements for partners. The bill also provides for the conversion of existing Cayman partnerships into LLPs and the continuation of foreign LLPs into the Cayman Islands.
Following the successful introduction of limited liability companies (LLCs) (similar to Delaware LLCs) in the Cayman Islands in 2016, LLPs will further increase the wide range of vehicles available in the Cayman Islands, maintaining its position as a leading international financial centre and bringing it in line with other jurisdictions where LLPs are already available.
For further information on this topic please contact Jonathan Culshaw at Harneys' Hong Kong office by telephone (+852 3195 7200) or email ([email protected]). Alternatively, contact Ian Gobin at Harneys' Cayman office by telephone (+1 345 949 8599) or email ([email protected]). The Harneys website can be accessed at www.harneys.com.
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