Guernsey consults on limited liability companies

Posted: 09/09/2019

Dominic WheatleyGuernsey is proposing to adopt limited liability companies (LLCs) in a move intended to enhance the island’s competitive position in the United States. 

The States of Guernsey has launched a consultation exercise, as it considers following many other international financial centre jurisdictions in introducing LLCs.

LLCs are commonly used in the US as structures for trading businesses, holding vehicles and special-purpose vehicles. It offers a flexible hybrid structure for any lawful business purpose or activity, offering legal personality and limited liability in a tax-transparent structure. 

There has been commercial interest in Guernsey in introducing LLC legislation to enhance the island’s competitive position, particularly in attracting international finance business from the US. 

Dominic Wheatley, Chief Executive of Guernsey Finance, said: “This move will be positive in developing Guernsey’s flows of funds business from the US, which is increasingly a target market for the Guernsey funds industry. The island’s expertise in private placement helps managers to access investment on both sides of the Atlantic, and this move will provide further opportunity for cross-border structuring.” 

Guernsey adopted limited liability partnerships in 2013. It is expected that LLCs – tax transparent by default – would be treated as partnerships for the purpose of taxation in Guernsey, but could decide at the point of establishment to be taxed as a company. 

The consultation closes on 18 September. 

Add a Comment

  • *
  • *
  • *
  • *
  • Submit

Want to know when we publish new content?

All you need to do is sign up for our newsletter.You'll receive a daily summary email of new items which have been published.

Please be advised that the volume of Business News articles which we publish is fairly high and you should expect to receive an email most days.

You can update your preferences at any time by registering for a account and visiting the 'Your Profile' page.


It's easy to stay current with

Just sign up for our email updates!

Yes please! No thanks!