The Irish government has drafted legislation that will replace the current Limited Liability Partnership Act 1907 and the Registration of Business Names Act 1963 when it comes into force. It will expand the registrar's powers and introduce additional reporting and disclosure requirements, Irish Legal News reports .
According to the new bill, it is planned to conduct a detailed audit of the founders of limited liability partnerships (both individuals and legal entities) and maintain a register of beneficial owners of partnerships managed from outside the European Economic Area. The bill includes a condition on the mandatory presence of at least one general partner resident of the EEA in the partnership. Enterprises will be required to maintain constant communication with government agencies.
Partnerships registered under the current legislation will have 12 months to comply with the requirements of the new bill from the moment it comes into force.
"This is a very useful and welcome piece of legislation that I intend to implement as soon as possible," said Peter Burke, Ireland's Minister for Enterprise, Trade and Employment, commenting on preparations for the introduction of the bill.
According to him, the new measures are aimed at ensuring that partnerships remain an attractive investment instrument while meeting all modern requirements in the area of ensuring transparency of business conduct.
“The Bill will ensure that Ireland, as a leading investment fund and management company domicile, remains competitive with other jurisdictions that have already modernised their limited partnership laws… This tool… will be a valuable addition to my department’s ongoing law reform initiative, maintaining Ireland’s reputation as a well-regulated and ‘leading edge’ environment in which to set up and operate a business,” Burke said.
“I recognise that the limited partnership model has been a popular investment vehicle here since the early 1900s. However, I also recognise the need to update the legal framework to reflect modern business practices and the public’s need for greater transparency, particularly in light of some of the concerns that have been raised about limited partnerships… This Bill strikes the right balance between appropriate levels of transparency about the people and activities behind registered business names and limited partnerships, without creating undue administrative burdens or prejudice to the legitimate use of either structure,” said Dara Callery, Minister of State for Trade Facilitation, Digital and Company Regulation.
