A limited partnership is any partnership that includes one or more general partners and one or more limited partners among its officers. Limited partners differ to general partner by contributing money as either capital or property valued at a specific amount.
Any individual or legal body - for example a company - may be a partner in a limited partnership, either as a general or as a limited partner. However, you cannot be a general and a limited partner at the same time.
You will have different debts and obligations in a limited partnership, depending on which type of partner you are:
Because limited partners have some form of legal protection from incurring any additional debts, they may not:
If a limited partner chooses to remove any of their original contribution they will lose their protection, and become liable for debts or obligations up to the amount they have received from the partnership. In addition, if a limited partner opts to manage the business for a length of time, they will become liable for any debts or obligations incurred throughout this period.
A limited partnership must be registered with Companies House. For more information, see the page in this guide on how to register a limited partnership.
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