Guernsey introduced its form of limited liability partnership with effect from 13 May 2014 in response to increasing demand for this type of structure in Guernsey, with all the benefits and advantages that Guernsey offers generally as a jurisdiction in which to do business.
LLPs have been introduced in several other jurisdictions, including the UK (from 2000) and a number of offshore jurisdictions, including; Bermuda, the British Virgin Islands, the Cayman Islands, Jersey, Mauritius and the Seychelles. In drafting the Limited Liability Partnerships (Guernsey) Law, 2013 (the Law) Guernsey has had the advantage of being able to learn from those other regimes to develop an alternative business structure that will be attractive to a wide variety of users, both domestic and international.
The principal concept of an LLP is that it combines the most advantageous features from a traditional partnership and a company. This gives the flexibility of operation of a partnership with reduced regulation compared to a company, combined with the benefit of its being a body corporate that can contract in its own right (rather than as a collective of partners), with limited liability for its members (in contrast to the unlimited liability of partners in a general partnership).