Increased Business Flows due to the Limited Liability Partnership Act
Updated on Thursday 31st March 2016
The Limited Liability Partnership Act was entered into force this month and it is an important addition to the existing types of companies in Gibraltar. Having this new legal form, foreign investors can now contribute to the business flows in the country in a more suitable way, adequate for their business needs. Gibraltar officials have underlined the importance of an updated legal framework for the types of companies functioning the in country, especially in a global business environment that is constantly evolving.
The Gibraltar limited liability partnership
The limited liability partnership in Gibraltar is a unique form of a company at is shares more of the characteristics of a company than those of a business partnership in tits traditional form. This type of partnership is independent of its founders and the usual Partnership Law does not apply to it. This limited liability partnership can be formed by two or more business partners who share the same business goals and who want to derive profits from their business. Under this business form, they have the possibility to perform all actions that would normally be performed by a natural person in Gibraltar, but without the liability for the actions of the other members. The partnership has an unlimited existence until its partners decide to wind up the business.
The limited liability partnership is liable to tax in Gibraltar. The members can conclude agreements among themselves as per the management and organization of their limited partnership. The members enjoy limited liability as long as they do not occupy any management positions in the partnership.
Types of companies in Gibraltar
Foreign investors in Gibraltar have several other business forms from which to choose. Private and limited liability companies are two examples of popular types of legal entities. Like the new type of partnership, these are also good options for those investors who want to have limited liability. Public limited liability companies are best suited for larger corporations on the market.
For more information about the types of companies in Gibraltar and the new limited liability partnership, please contact our company registration experts in Gibraltar.