The introduction of new legislation in Jersey that enables the establishment of Limited Liability Companies (LLCs) has the potential to significantly enhance pan-Atlantic business with the US, according to Jersey Finance.
The Draft Limited Liability Companies (Jersey) Law was approved by Jersey’s government on 11 September, paving the way for limited liability companies (LLCs) to be established in Jersey.
Combining the flexibility and privacy of a partnership with the protective limited liability of a company, LLCs have become popular vehicles globally for a wide variety of uses, from SMEs and holding companies to fund structuring.
However, LLCs are especially 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 option for cross-border structuring.
Geoff Cook (pictured), CEO, Jersey Finance, says: “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 focussed on supporting their needs, having announced earlier this year our intention to open an office in the US in the near future.
“In the US, LLCs are a structure of choice for alternative investment funds, with US advisers and managers being familiar with LLC structures and aware of the benefits they can provide in terms of tax transparency. With that in mind, we are confident that the Jersey LLC can provide an attractive proposition for US-based hedge fund managers, particularly in operating master-feeder structures. We anticipate strong growth in this area, whilst we also believe the LLC can be a really positive addition to our suite of vehicles more widely to enable better international structuring.”
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.
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