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Limited Partnership Formation

A Limited Partnership is a type of Partnership which is registered with the Limited Partnership Act 1907. This type of partnership requires 2 or more people, at least 1 person to act as the General Partner who has management authority and personal liability, and at least 1 person to act as the Limited Partner who is an investor and has no management authority. The General and Limited Partners must enter into the Limited Partnership by either oral or written agreement.

Why choose a Limited Partnership?

  • A limited partnership’s income is not taxed at the business level. Instead, business profit and loss are passed through to the partners for reporting on their personal tax returns
  • The liability for debts that cannot be paid in a limited partnership is split among the partners within the company
  • Limited partnerships can generate capital investments by adding more limited partners

The Partner’s responsibilities differ as:

General Partner:

  • Responsible for managing the business
  • Make permanent decisions within the company
  • Liable for the debts the business cannot pay

Limited Partner:

  • Only liable for debts up to the amount contributed
  • Cannot manage the business
  • Investor of the Limited Partnership

Timescale

On average it takes around 5 working days to register a Limited Partnership

Requirements for a Limited Partnership

To register a Limited Partnership, you will be required to supply the following:

  • The company name including the name ending of either ‘Limited Partnership’ or ‘LP’
  • Nature of Business
  • The Business Address (must be located within the UK, we can supply an address if required)
  • Details of how long the Partnership will be registered for
  • Full Name of General Partners
  • Full Name of Limited Partners
  • Amount that each Limited Partner is contributing
  • Cannot be incorporated electronically, must be processed by paper

Once all the relevant information has been supplied, Companies House will issue a Certificate of Incorporation which will confirm that your company has been registered on the Register of Companies.