The Bermuda Government’s bid to set up a limited liability companies framework has been approved by MPs.

The Limited Liability Companies Act 2016 received widespread support from both sides of the House of Assembly as the Bill was debated yesterday.

The legislation, which was previously tabled by Grant Gibbons, the Minister of Economic Development, will allow for LLCs as a new commercial structure on the island.

Dr Gibbons described the new Act as a “significant piece of legislation” and the “successful collaboration between Government and the private sector”.

He said that LLCs offered firms greater flexibility and would bring Bermuda up to date with modern business practices adding “This is the first new corporate structure in over 100 years,” he added.

Jamahl Simmons, the Shadow Minister of Economic Development, said that the Progressive Labour Party supported the new legislation.

“It is evident there are demands for this and our competitors are using it,” Mr Simmons said.

“The great thing about this is that if we can draw business it creates opportunities for Bermudians and we must ensure that Bermudians are prepared to work in this industry.”

Professionals working in the industry have previously welcomed the move by Government.

David Cooke, head of corporate at law firm Conyers Dill & Pearman, said that, while limited companies were the Bermuda standard, times had changed.

Mr Cooke said: “We in the private sector have been hearing calls for this for a number of years and it’s been a very big project to get this done.

“We are hoping that it will not only increase the number of entities on the island, but will also show that Bermuda is open for business. Bermuda used to be seen as on the cutting edge of international business and we’re getting that back.

“A very large proportion of our business comes from the US. The drive here was to provide an entity which is recognisable and more useful for American lawyers.”