Jersey has adopted new legislation that allows limited liability companies (LLCs) to establish themselves on the island, a move that could significantly enhance pan-Atlantic business with the US.
LLCs are popular in the US, currently accounting for over two-thirds of all new transparent business structures formed in the country each year, and it is anticipated that the introduction of a Jersey LLC will give US advisers, investors, businesses and fund managers a familiar incentive for cross-border structuring.
LLCs combine the limited liability protection of a company with the constitutional flexibility and privacy of a partnership, whilst also enabling a choice between the management structures and tax treatments of both.
The Draft Limited Liability Companies (Jersey) Law was approved by Jersey’s government this week, meaning limited liability companies (LLCs) can now be established in Jersey for the first time.
“As a forward-thinking jurisdiction, Jersey is keen to support the growth the US is currently experiencing and has recognised the demand amongst US institutions and fund managers for a vehicle that can meet their cross-border requirements. We are focused on supporting their needs, having announced earlier this year our intention to open an office in the US in the near future,” Geoff Cook (pictured), Jersey’s Finance chief executive said in a statement.
The new Jersey LLC law follows new limited liability partnerships legislation (LLPs) coming into force in Jersey in August. The new Limited Liability Partnerships (Jersey) Law 2017 represents a major overhaul of Jersey’s existing LLP legislation, originally introduced in 1997, and will make LLPs even more attractive as a more streamlined, cutting-edge structure that works for both professional services businesses and investment activity, according to Jersey Finance.
The move follows the recent introduction of LLCs to both the Cayman Islands and Bermuda.