Jersey’s government has approved the Draft Limited Liability Companies (Jersey) Law, allowing limited liability companies (LLCs) to be established in Jersey for the first time.
The law was approved on 11 September and follows the new limited liability partnerships (LLPs) legislation, which came into force in August.
According to Jersey Finance, the law has the potential to significantly enhance pan-Atlantic business with the US.
LLCs have become popular vehicles globally for small and medium-sized enterprises and holding companies to fund structuring.
They are especially popular in the US, currently accounting for over two-thirds of all new transparent business structures formed in the country each year, and it is anticipated that the introduction of a Jersey LLC will give US advisers, investors, businesses and fund managers a familiar option for cross-border structuring.
Geoff Cook, CEO of Jersey Finance, said: “Jersey is keen to support the growth the US is currently experiencing and has recognised the demand amongst US institutions and fund managers for a vehicle that can meet their cross-border requirements.”
“We are focused on supporting their needs, having announced earlier this year our intention to open an office in the US in the near future.”
He added: “In the US, LLCs are a structure of choice for alternative investment funds, with US advisers and managers being familiar with LLC structures and aware of the benefits they can provide in terms of tax transparency.”
“We are confident that the Jersey LLC can provide an attractive proposition for US-based hedge fund managers, particularly in operating master-feeder structures. We anticipate strong growth in this area, whilst we also believe the LLC can be a really positive addition to our suite of vehicles more widely to enable better international structuring.”
