Cayman To Introduce Limited Liability Partnerships

The Cayman Islands ('Cayman') is set to introduce a new entity ideally suited to professionals looking for the flexibility of a traditional partnership, but with the protection of a separate corporate identity – the Limited Liability Partnership ('LLP'). As well as benefitting those who do business in Cayman, the legislation is drafted widely enough to allow the use of Cayman LLPs internationally.

When will this happen?

The Limited Liability Partnerships Bill 2017 was Gazetted on 31 January 2017 and it is expected to be passed by the Cayman Legislative Assembly later this month, parliamentary time permitting.

So what is an LLP?

An LLP combines elements of a corporate body and a partnership. Like a corporation, an LLP is an entity created and governed by statute which has a separate legal identity from its owners. Unlike a company, an LLP has partners and a partnership agreement rather than shareholders and a memorandum and articles of association.