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By: Trident Trust

The BVI has modernised its partnerships regime with the enactment of a new Limited Partnership Act, 2017 and Limited Partnership Regulations, 2018, both of which entered into force on 11 January 2018.

A key feature of the new regime is that it allows limited partnerships the option of having legal personality, meaning a partnership can enter into contractual arrangements, commence or defend legal proceedings in its own name, and create a charge over its assets and register such charges so that they have priority over later registered or unregistered charges under BVI law.

The new LP Act is of significant interest to companies and individuals embarking on joint venture initiatives or setting up investment funds, as it provides the legal capacity and the flexibility to transfer interests or admit new investors.

Similarities to the Business Companies Act, 2004

The LP Act is modelled on the BVI Business Companies Act and there are many procedural and administrative similarities between the two regimes. Like a BVI Business Company, a limited partnership that is registered under the LP Act and which has legal personality may, among other things:

-merge or consolidate with other limited partnerships;

-continue into or out of the BVI;

-compulsorily redeem minority interests; and

-enter into schemes and plans of arrangement.

Key Features of New Limited Partnerships

In addition to the ability to have legal perso......................

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