Earlier last year on the 24th March 2016 the Limited Liability Partnerships Act (‘LLP’) came into force in Gibraltar adding to an already expanding choice of products that Gibraltar has to offer.
This is the third type of partnership structure available in Gibraltar and some of the more advantageous aspects of the act are:-
A high degree of protection with regards to errors or negligence that may occur due to a colleague’s careless behaviour.
- Members are able to agree the terms of the relationship between themselves
- The agreed terms of the relationship are confidential
- Limited liability for members without having to issue share capital
- No restriction on the number of members
- All members may undertake management functions without losing their limited liability protection
- Minimal reporting and registration requirements
The aspect which makes the new LLP so distinctive from the other two partnerships is that members may or may not contribute to the management, but regardless they will still have limited liability. Although termed as a Partnership under Gibraltar law limited partnerships and the new LLP differ from ordinary partnerships and are actually corporate bodies which can have a continued legal existence independent of their members.
It is hoped that the act will give Gibraltar’s financial sector a boost by allowing it to offer both broader and more comprehensive solutions to professional practitioners.