The Cayman Islands has taken steps to introduce a new vehicle in 2016. The Limited Liability Companies Bill, 2015 (the “Law”) was published in December 2015, and is expected to become law in the first half of 2016. A Cayman Islands limited liability company (“LLC”) will be a body corporate with separate legal personality, which confers limited liability upon its members. It has many flexible features, while retaining legal and equitable concepts familiar to users of Cayman Islands exempted companies and exempted limited partnerships.
The LLC was in-part modeled on Delaware limited liability companies. For that reason, LLCs will be of interest to clients who wish to establish offshore fund vehicles that are a close parallel to their onshore counterparts. But their appeal goes beyond their similarity to other vehicles – LLCs will be attractive for a range of applications, including joint ventures, holding companies, and serving as the general partner to an exempted limited partnership.