Companies in the Bermudas as in Delaware State

Dr. The Hon. E. Grant Gibbons, Minister of Economic Development in the Bermudas, 1^st June held negotiations for the enactment of Limited Liability Company Act 2016. The Act regulates creation of the first commercial structure in the Bermudas in more than 100 years.

Limited Liability Companies (LLC) are currently one of the most wide-spread commercial structures in the USA. LLC are generally treated as hybrid entities, because they combine characteristics and advantages of both partnerships, and corporations. A fundamental similarity to partnership is that LLCs are governed on the basis of contractual agreements between company members. Thus, members of the company may specify proper terms of company governance.

A similarity with corporations and in particular with LLCs is that members generally enjoy limited liability, that means personal liability is restricted by the amount of each member’s personal contribution. That restriction also remains when members take active part in company governance. In fact investors are interested exactly in that very thing: they will be able to carry daily business of a company retaining limited personal liability.

LLCs are a good choice for private equity funds and asset holding structures. «Such companies are used in some other offshore jurisdictions, such as the Isle of Man, Anguilla and the Marshall Islands. LLCs have been introduced recently in the Cayman Islands.»

The LLC structure in the Bermudas corresponds to the company structure in Delaware, USA almost in full amount. «In Delaware there are almost 800,000 active LLCs, most of which have been formed since the start of 2015.»

Dr. Gibbons specified that the new company type will underlie the same transparency rules for the beneficial owners as other company types.

Source:

https://www.gov.bm/articles/limited-liability-company-act-2016