Jersey Enacts New Partnership Laws

by Jason Gorringe, Tax-News.com, London

03 May 2011

The Jersey government has enacted the Incorporated Limited Partnerships (Jersey) Order 2011 and the Separate Limited Partnerships (Jersey) Order 2011, the final stage in enabling the formation of new partnership structures in Jersey.

Following the enactment of these Orders, Separate Limited Partnerships may now be formed and from May 24, 2011, Incorporated Limited Partnerships will become available.

Commenting previously on the structures, Heather Bestwick, Technical Director of Jersey Finance, said:

”The new Separate Limited Partnership and Incorporated Limited Partnership will be attractive additions to the Jersey Limited Partnership regime. Since the Limited Partnerships (Jersey) Law 1994 came into force, the Limited Partnership has become a vehicle of choice in establishing private equity funds and venture capital schemes. In the last few years, Jersey’s Limited Partnership has also been used to form funds investing in diverse asset classes, including real estate and mezzanine debt and in raising Tier 1 capital for financial institutions."

“The new SLP will appeal to funds clients and those wishing to set up carried interest vehicles and the new ILP will find use in structured finance. The range of possibilities that the new partnerships will bring, with their variations of legal personality and asset ownership combined with commercial flexibility will further enhance Jersey’s appeal as a domicile for fund and finance vehicles.”

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