A limited liability partnership (LLP) combines the features of both a company and a limited partnership. It can be used to offer professional or consultancy services and also legal services under a Global Legal Advisory Services Licence.
An LLP structure also has the flexibility to provide key individuals with a stake in the underlying business without disturbing the share ownership in a company. This can often be advantageous for family-owned or private companies where shareholders are unwilling to dilute their shareholdings but recognise the need to provide long-term incentives to staff.
An LLP is governed by the Limited Liability Partnerships Act 2016. A partnership agreement must be put in place by the partners providing for the governance of the LLP and the rights and duties of the partners.
An LLP can be set up by two or more partners. There are no restrictions on the residency of the partners and a partner can be an individual, an entity or an unincorporated body. The LLP Act also provides for the conversion of an existing entity or unincorporated body to an LLP and the re-domiciliation of foreign LLPs or Mauritian LLPs to and from Mauritius.
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 at all times. 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.