Following the eagerly awaited introduction of the Limited Liability Company last year, the Cayman Islands Government has just released draft legislation for the introduction of a Limited Liability Partnership (“LLP”) vehicle.
An LLP can offer the “best of both worlds” in the sense that they can offer the flexibility and tax transparency of a traditional partnership and yet offer the protection and convenience of having a separate legal personality in the same way as an exempted company. It is anticipated that the LLP will of course be popular with professional services firms but also for private equity fund managers.
We expect the draft legislation to be approved imminently, parliamentary time permitting, with LLP’s being available by the end of the second quarter of 2017.
Have you read our guidance note on the Limited Liability Companies Act?