Cayman Islands Introduces Limited Liability Partnership Vehicle

The Cayman Islands has recently passed legislation to allow for the establishment and registration of a new Cayman Islands vehicle: the limited liability partnership (an "LLP").¹ It is anticipated that the Registrar of LLPs in the Cayman Islands will start accepting applications to register LLPs in late 2017.

An LLP combines the flexible features of a general partnership but has the benefit of separate legal personality and affords limited liability status to all its partners.

As such, an LLP is likely to become the preferred manner by which professional firms operating in the Cayman Islands structure their businesses.

An LLP's features and flexibility, however, will also provide an additional structuring option for other purposes, including in the financial services industry as, by way of example, a general partner or management vehicle or as a holding or fund of funds partnership.