Limited Partnership Expertise
Limited partnerships can be an attractive structuring alternative and are used for private investment structures and family wealth structuring.
These structures are both flexible and easy to establish. Governed in Jersey by the Limited Partnerships (1994) Law.
A limited partnership is a partnership between general partners and limited partners. Critically, the liability of the general partners is unlimited to any unpaid commitment, whereas the liability of the limited partners is limited.
A corporate Special Purpose Vehicle will act as the general partner and be responsible for the management of the partnership. Limited partners may have economic interest in the partnership, but they do not take part in its management.
Due to their flexibility limited partnerships are used in numerous situations, e.g.:
- Estate planning
- Asset protection
- Private equity and venture capital schemes
- Real estate investment and development
- Tax and financial planning
Limited partnerships are tax transparent. The partnership itself is not subject to tax, with the income or losses being treated as those of the individual partners. This enables individual partners to benefit from any applicable tax benefits or relief.
Privacy can be maintained in Limited partnerships, there is no requirement to file details of the names of limited partners, the partnership agreement with the Registrar and annual returns.
Forwards’ experienced team have the experience to create and administer limited partnerships, as stand-alone structures or as part of a wider estate planning solution.
KEY FEATURES
- Fiscal transparency; Jersey tax exemption
- Limited liability for limited partners
- Flexibility subject to client aims and means of contribution
- Unlimited number of limited partners
- Clear control and ownership
