Guide To Limited Partnerships In Jersey (April 2012)

1. Introduction

Jersey legislation allows limited partnerships to be established pursuant to the Limited Partnerships (Jersey) Law 1994, as amended (the "LP Law"). The LP Law provides a flexible partnership vehicle for sophisticated or institutional investors who wish to participate in a partnership with the benefit of limited liability but without taking part directly in the management of the partnership affairs, such management being undertaken by the general partner. The Family Limited Partnership ("FLP") provides a way to ensure that wealth is both protected and easily passed on to the next generation.

Jersey recently approved legislation to allow incorporated limited partnerships and separate limited partnerships to be established pursuant to the Incorporated Limited Partnerships (Jersey) Law 2011 (the "ILP Law") and the Separate Limited Partnership (Jersey) Law 2011 (the "SLP Law"), respectively.