Exempted Limited Partnership

The Exempted Limited Partnership Law (2018 Revision) (“the Law”) makes it possible to form limited partnerships for offshore investors with the minimum of delay. Such a partnership may not undertake business with the public in the Cayman Islands, other than as necessary for the carrying on of business outside Cayman. The key features of Exempted Limited Partnerships (“ELP”) are:

1. There is no inheritance, income or capital gains tax, or estate duty which applies to partnerships, including an exempted limited partnership or its partners.
2. A partner may be a general or limited partner as well as a corporation with or without limited liability.
3. The Registrar is required to maintain a record for each partnership, which is to be kept open to public inspection. A statement containing the following particulars must also be filed to affect registration:
   1. A name which must include “Limited Partnership” or “LP”.
   2. The nature and principal place of business of the partnership.
   3. The term of the partnership.
   4. The name and address of each general partner.
   5. A declaration that the partnership will not undertake business with the public in the Cayman Islands except so far as may be necessary for the carrying on of its business outside the Cayman Islands.

The Law provides for the registration of a partnership already established in another jurisdiction.  Cayman Islands ELPs may also de-register and continue under the Laws of another jurisdiction.

ELPs are required to file a return along with the requisite fee which becomes due in January of the first year after registration and thereafter.