Bermuda Exempted And Limited Partnerships

1. INTRODUCTION

The partnership is a popular vehicle for international ventures primarily because it is regarded in most jurisdictions (including the U.S. and the U.K.) as fiscally transparent. As a general principle, tax is imposed at the partner level, not at the partnership level, and consequently the tax position of one partner does not affect the position of any other partner.

The principal statutes governing the formation and operation of Bermuda partnerships are:

1. Partnership Act, 1902 (as amended) (the "Partnership Act");
2. Limited Partnership Act, 1883 (as amended) (the "Limited Partnership Act"); and
3. Exempted Partnerships Act, 1992 (as amended) (the "Exempted Partnerships Act").