22 April 2008
The Economic Development Department (EDD) has today issued a consultation paper reviewing the Jersey law on Limited Liability Partnerships (LLPs). The consultation is part of EDD’s ongoing work to assist Island businesses – both large and small – by reviewing Jersey’s corporate structures.
Launching the consultation, Philip Ozouf, the Minister for Economic Development, said: “This review is good for business – from those thinking of setting up a small team of tradesmen to big financial services firms – and shows EDD’s commitment to work with all sectors to promote the Island’s economic growth.”
The Limited Liability Partnership (Jersey) Law was an innovative concept when it was passed in 1997. However, since then, LLP laws have been introduced in many other jurisdictions. To ensure that our law remains up-to-date and competitive, EDD wishes to review it in the light of these developments.
The consultation paper sets out a number of different options for developing the Jersey LLP structure. In particular it considers a variety of issues which, while somewhat technical, are essential for the smooth working of the LLP structure – both in the Island and as an international vehicle. These include: the legal status of an LLP; the registration process, including the current requirement to lodge a £5 million bond (which means that no small business has used the current LLP structure); disclosure and accounting requirements; tax and insolvency treatment; and migration of LLPs.
This consultation is an opportunity for all interested parties to submit their views to EDD and ensure that Jersey’s LLP legislation develops in the best way possible. To access the document please click on the following link Limited Liability Partnerships (LLP's) Public Consultation
Responses are invited by the 11 July 2008.