Authored by ConfidusSolutions

Limited liability partnerships

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  • A limited liability partnership is a form of company in which the liability of each partner is limited to the total value of their contributions. In other words, each partner's liability does not jeopardize their personal assets, only the assets they have brought into the partnership. This may vary depending on the place of jurisdiction and the provisions of the articles of association. For example, some legal systems require that every limited partnership must have a general partner whose liability is unlimited.

    Another distinguishing feature of the limited partnership is that all partners have the right to participate directly in the management. The situation is different with partners who elect a board of directors to manage the company for them, and with silent partners in a limited partnership who have no management rights.

    Owner of a limited partnership In principle, all partners in a limited partnership are considered to be owners with equal rights and the same rights and liability limits. This can be changed to a certain extent by the laws of a particular jurisdiction and the relevant articles of association.

    As mentioned earlier, some jurisdictions may require a partner to become a "general"; H. has unlimited liability. Other variations may affect some forms of unlimited liability, e.g. in some US states individual partners may be personally liable for international unlawful acts of an LLP (violations of civil law).

    Even if they may seem small at first glance, these deviations can significantly change the recommended approach when setting up a limited partnership. For this reason, we strongly recommend that you contact Confidus Solutions' international team of experts, who will prepare a detailed analysis of the registration requirements for companies in each jurisdiction.

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