Investment and Trading Entities - Limited Liability Partnerships

It is possible to form a limited liability partnership in Jersey under the provisions of the Limited Liability Partnerships (Jersey) Law 1996.

Unlike a limited partnership the limited partners will not incur unlimited liability if they are actively involved in the running of the business. Initially at least, an application to register as a limited liability partnership is likely to be accepted only if made by a substantial professional practice. However it is not necessary for the professional practice concerned to carry on its business in Jersey.

Under present proposals, a Jersey limited liability partnership is required to enter into a guarantee or similar agreement with a financial institution based in Jersey to provide surety to its creditors for an amount of up to œ5 million.

There is no requirement for a Jersey limited liability partnership to publish its financial statements.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.