Cayman Islands Exempted Limited Partnerships are governed by the Cayman Islands Exempted Limited Partnerships Law.
An Exempted Limited Partnership is prohibited from trading with the public in the Cayman Islands. However, it may enter into contracts in the Cayman Islands, which are necessary to carry on its business outside the Cayman Islands e.g. contracts with service providers etc.
Tax status- An Exempted Limited Partnership may obtain an undertaking by the Cayman Islands Government confirming its tax-free status for a period of 50 years i.e. that no law enacted in the Cayman Islands imposing any tax levied on profits or income or gains or appreciation shall apply to the partnership or to any partners in respect of the partnership.
The name of an Exempted Limited Partnership should include the words 'Limited Partnership' or the words 'LP' or 'L.P'.