New legislation in Jersey that enables the establishment of Limited Liability Companies (LLCs) could significantly enhance pan-Atlantic business with the US, according to Jersey Finance.
The Draft Limited Liability Companies (Jersey) Law was approved by Jersey’s government on 11 September, meaning LLCs can now be established in the Crown Dependency.
LLCs have become popular vehicles globally for a wide variety of uses, from SMEs and holding companies to fund structuring, and they are especially popular in the US. Currently, they account for over two-thirds of all new transparent business structures formed in the country each year.
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, chief executive Jersey Finance, commented: “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.
“In the US, LLCs are a structure of choice for alternative investment funds. With that in mind, we are confident that the Jersey LLC can provide an attractive proposition for US-based hedge fund managers, particularly in operating master-feeder structures.”
This LLC law follows new limited liability partnerships legislation (LLPs), which came into force in Jersey in August.
The new Limited Liability Partnerships (Jersey) Law 2017 replaces Jersey’s existing LLP legislation, originally introduced in 1997, and aims to make LLPs more attractive as a streamline structure that works for both professional services businesses and investment activity.
Jersey Finance was formed in 2001 to represent and promote Jersey as an international financial centre of excellence. It is funded by members of Jersey’s finance industry and the Government of Jersey. It has offices in Jersey, Dubai, Hong Kong, representation in London, and a virtual office in Mumbai and Shanghai.