Partnerships In Jersey

Introduction

In addition to the option of creating a 'standard' partnership via a partnership agreement under Jersey customary law, Jersey will shortly have four statutorily recognised types of partnership. This briefing note will start by outlining the two types currently established under Jersey law before considering the two new types which are expected to be introduced later in 2009.

Limited Partnerships

A limited partnership ("LP") is a partnership vehicle registered under the Limited Partnerships (Jersey) Law 1994 (the "1994 Law"). It is a partnership made between one or more 'general' partners and one or more 'limited' partners. The general partner manages the partnership and as such has unlimited liability (like a partner in a 'standard' partnership) for the debts of the partnership whereas the limited partner's liability will remain limited to the amount of its contribution provided it does not become involved in the management of the LP. The