On 1 November 2016 the States adopted the Limited Liability Partnerships (Jersey) Law 201-. The Law, which awaits Privy Council approval, replaces the Limited Liability Partnerships (Jersey) Law 1997 and aims to make the Jersey Limited Liability Partnership (“LLP”) a more competitive vehicle.

LLPs are partnerships governed by the terms of their partnership agreements but having some of the benefits offered by companies including separate legal personality and a form of limited liability.  They are flexible structures which can be used for a variety of purposes for example by professionals, by small businesses and in financial services.

The new LLP Law and Regulations will provide for the establishment, dissolution and winding up of LLPs, for their registration and connected purposes.  They will tidy up some of the changes that were made in 2013 amendments to the 1997 Law (for example removing the requirement of a £5m bond and replacing with a solvency statement), they will modernise some of the previous wording, draw upon the lessons learnt from English case law and restate the insolvency provisions that are simpler to interpret under the arrangements.