Limited Life Companies

The TCI Limited Life Company (LLC) is designed principally to enjoy the benefits of a partnership, where for income tax purposes profits and losses are treated as attributable to the members of the company rather than o the company itself, whilst at the same time enjoying the advantages of a corporate entity.

THE LAW

With the passage in 1993 of an amendment to the Companies Ordinance 1981, it became possible to register an exempted company in TCI with the status of a Limited Life Company, or LLC. The amendment was designed to facilitate the growing demand, particularly in the United States, for the LLC, known there as a "limited liability company'. The central purpose of the new legislation is to permit companies to be incorporated without one or more of the corporate characteristics of perpetual life, free transferability of ownership interests and centralised management, while still retaining the principle of limited liability of members.