A Limited Partnership (LP) is a vehicle designed to bring flexibility in the corporate sphere. LPs having a legal personality are legal persons distinct from their members.
The structure of a company requires matters to be laid down by statute, whereas the constitution and governance of an LP are set out in the partnership agreement. This flexibility means that the LP partners are free to choose the structure which works best for them.
A limited partnership must have at least two partners, one or more general partners and one or more limited partners. In most jurisdictions, a general partner can also be a limited partner and vice versa.
General Partners: General partners undertake the management of the partnership and, in common with partners in an ordinary or “general” partnership, have an implied authority to bind the partnership when acting within the sphere of the partnership’s activities.
Limited Partners: Limited partners are not intended to, and should not; participate in the active management of the limited partnership. They are effectively passive investors and as limited partners have no implied authority to bind the partnership.
Potential uses for limited partnerships
Limited partnerships have many potential uses. Their appeal will vary according to the nature of the laws and fiscal regimes of the potential investors’ home jurisdictions. Below are some of the possible uses for limited partnerships include:
At Valsen, we offer you a one stop shop solution for registration and administration of your Limited partnership in any jurisdiction of your choice. Our services include but are not limited to the following;
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