TCI Limited Partnerships
Exempted Limited Partnerships ("LPs") in
TCI are usually provided with a Guarantee of Exemption from
Taxation in TCI for 50 years which makes them particularly
attractive for individuals seeking security for the longer
term (in the case of exempted companies the exemption lasts
for 20 years).
Email us for details of costs and procedures
Features of
Limited Partnerships
LPs are similar to LLC's in that they
provide limited liability to the limited partners while
avoiding classification as a corporation (tax-transparency).
One of the principal differences between the two is that an LP
is required to have a general partner (typically a TCI
registered company) to carry the liability and perform the
management functions of the partnership. This structure can be
preferable to an LLC in certain circumstances, for example,
where it is in the interests of the investor members to remain
separate from the entity carrying on business (the general
partner) for tax or other reasons.
LP's can provide a particularly useful and flexible means of
achieving a number of objectives, including:
-
Limiting liability;
-
Investing into the US (or other
jurisdiction as may be applicable) without being deemed to be
doing business there for tax purposes;
-
Avoiding corporation tax on dividend
distributions made to US limited partners/investors;
-
Raising venture capital.
-
Holding real property or assets ;
-
Dissuading and deferring frivolous
law-suits;
As mentioned above, TCI exempted companies
are typically used as general partners of LP's set up for
international business purposes and under the terms of the
partnership agreement they usually have extremely limited
rights to participate in the profits of the partnership
undertaking.
These types of partnerships are referred to as Exempted
Limited Partnerships and are only required to file the
following information: (a) the name of the general partner;
(b) the Registered address; and (c) a statement from the
general partner that it is not required to file the
partnership agreement and that the duration (if limited).
Identities of the limited partners remain private as do the
terms of the partnership agreement itself, and accordingly
clients acquire a high level of protection without
compromising their privacy.
We will be happy to discuss the further uses of TCI LP's and
will email more detailed information, dealing in particular
with the standard costs, considerations and requirements, upon
request.
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