Bermuda LLCs: A New Entity In A Familiar Form

Bermuda's recently enacted Limited Liability Company Act, 2016 (the "Bermuda LLC Act") comes into force on 1 October 2016. The legislation provides for the formation and operation of limited liability companies ("Bermuda LLCs") which will be familiar to those with experience of Delaware LLCs.

The Bermuda LLC Act provides for a new form of entity which can be used for any lawful business or activity, including trading, asset holding, financing and investment.

What is a Bermuda LLC?

A Bermuda LLC is a hybrid entity combining characteristics of a limited partnership and a company limited by shares (referred to here as a corporation). The LLC concept was first developed in the United States, where it has become one of the most common forms of business entity, due to its flexibility and ease of operation. The central provisions of the Bermuda LLC Act were closely modeled on the corresponding provisions of the Delaware LLC legislation, so that Bermuda LLCs will look,