Limited Liability Partnership

The Limited Liability Partnership Act 2016 (the “Act”) has introduced limited liability partnerships (“LLPs”) in the laws of Mauritius. LLP integrates the basic features of both companies and partnerships. It is a suitable business vehicle that allows limited liability protection provided by the company structure and at the same time, it allows the partners to engage in management activity. The initiation of the LLP business structure in Mauritius promotes the country’s economic level and brings it in line with international best corporate practices.

FEATURES

• A partner is accountable and liable only to the extent of his own wrongful acts or omissions, there exists limited liability protection against malpractice suits that stem from another partner's negligent acts.
• A partner in an LLP cannot be held liable to pay debts beyond the amount of his contribution to the LLP. A contribution to an LLP can be done in several ways, namely by the provision of money, loan, any other property or service or even through non-cash consideration.
• Each partner's role in the decision-making process of the LLP will be defined in the partnership agreement.

LLP REGISTRATION

An LLP must be registered with the Registrar of LLPs and can also apply to the FSC for a Global Business Licence if it conducts a major part of its business outside Mauritius. An LLP must appoint a manager that is resident in Mauritius. The manager of a domestic LLP should be qualified as a secretary. If an LLP holds a Global Business Licence, the manager must be a licensed Management Company.

KEY REQUIREMENT

It is mandatory for the Limited liability partnership in Mauritius companies to have a partnership agreement and all the partners of the LLP Company should sign this agreement.

The partnership agreement also governs the code conduct by which the LLP should operate. This also specifies the mutual rights and duties of the partners and the rights and duties that related to their LLP organization.

LIABILITY OF PARTNERS

According to the law of limited liability partnership in Mauritius, the partners of the LLP will not be personally liable for the acts and or omissions of another partner of the company.

However, the partners must have unlimited liability for their own actions or actions. In terms of debt, the partners would not be responsible for the amount that exceeds their amount of contribution.