British Virgin Islands Partnership Law

Partnership Act, 1996 (“the Act”) was enacted on the 6 June,1996 and provides a modern legislative framework for the formation and administration of partnerships in the British Virgin Islands (“BVI”) which includes many of the recent developments that have occurred in international partnership law. The Act provides an attractive vehicle through which to launch mutual funds and other collective investment structures.

The Partnership Act, 1996

Significant features of the Act are as follows:

Partnerships in General

The Act:

• governs all partnerships including general partnerships, limited partnerships and international limited partnerships

• provides no restriction on the number of partners

Limited Partnerships

Limited Partnerships: 

• are allowed to have a body corporate act as general partner

• are given protection as to the identities of the limited partner

• are able to limit their liability to third parties

• are provided with an environment which allows the limited partners to retain a large degree of control over partnership affairs whilst still retaining the benefits of being a limited

International Limited Partnerships

• International limited partnerships have the same advantages as described above in relation to limited partnerships. However, certain additional provisions apply to an international limited partnership. These include:

• a requirement to be registered

• a requirement to have a Registered Agent in the British Virgin Islands

• the same tax exempt status as is given to international business companies

• the ability to reserve a name for up to 90 days