We are pleased to report that the Limited Liability Partnership Law, 2017 (Law) came into force on 5 June 2017, making the Cayman Islands limited liability partnership (LLP) available for the first time in the jurisdiction. The Law provides for the formation, registration and operation of an LLP. We expect the regulations under the Law to be gazetted shortly.
What is an LLP?
An LLP is a statutory entity with limited liability. The key feature that distinguishes an LLP from a limited partnership registered under one of the Cayman Islands’ other partnership statutes (LP) is the LLP’s independent legal personality; the Law provides for the formation of an LLP as an entity with legal personality other than a body corporate which is separate and distinct from the partners in the LLP. The affairs of an LLP are governed by its partnership agreement. Unless otherwise provided in its partnership agreement, an LLP shall be capable of exercising all the functions of a natural person of full capacity irrespective of any question of benefit.