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New Residency Rules For New Zealand Limited Partnerships

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New Residency Rules for New Zealand Limited PartnershipsChanges To The Limited Partnerships Act 2008

The Limited Partnerships Amendment Act 2014 (and Amendment Regulations) came into force on 1 September 2014 and introduced some important changes for New Zealand Limited Partnerships (“LPs”). One of the principal changes is the introduction of new residency requirements for general partners, which is summarised below.

The new regulations aim to increase domestic and international confidence in, and the integrity of, financial markets and corporate structures in New Zealand.

Resident General Partner

All New Zealand LPs formed on or after 1 September 2014 must have at least one General Partner who has a residency connection to New Zealand or Australia. Existing LPs formed prior to 1 September 2014 must ensure that they comply by or before the 28 February 2015.

Residency Connection 

All LPs must have at least one General Partner who is either: 

a)    Resident Company - A limited liability company incorporated in New Zealand that has at least one director who is a natural person who lives in New Zealand (or lives in Australia and who is a director of a company, other than an overseas company, in Australia); OR

b)   Resident LP - A limited partnership that has at least one general partner who is a natural person who lives in New Zealand (or lives in in Australia and is a director of a company, other than an overseas company, registered in Australia); OR

c)     Resident Individual - A natural person lives in in New Zealand (or in Australia and is a director of a company, other than an overseas company, registered in Australia); OR 

d)    Resident Partnership - A partnership governed by the Partnerships Act 1908 that has at least one general partner who is a natural person who lives in New Zealand (or in Australia and is a director of a company, other than an overseas company, registered in Australia); OR

e)    Company registered In New Zealand As An Overseas Company – An overseas company registered in New Zealand under the Companies Act 1993 that has at least one director who lives in New Zealand (or in Australia and is a director of a company, other than an overseas company, registered in Australia. 

Time To Act

The changes will affect all existing and newly-formed LPs in New Zealand. Although existing LPs have until 28 February 2015 to comply, it is important to consider the implications of these changes now and ensure that compliance with the new requirements is achieved.

It is recommended that you seek legal advice if you are unsure whether your current general partner meets the new requirements. Pearse Trust is actively assisting clients with meeting the new requirements. Please do not hesitate to contact us for further advice.

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