Limited Partnership Formation
A Limited Partnership formation 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 Registration?
- 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:
- Responsible for managing the business
- Make permanent decisions within the company
- Liable for the debts the business cannot pay
- Only liable for debts up to the amount contributed
- Cannot manage the business
- Investor of the Limited Partnership
On average it takes around 5 working days to register a Limited Partnership
Requirements for a Limited Partnership Formation
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.
- Those registering Limited Partnerships must demonstrate that they are registered with an official anti-money laundering supervised agent, such as an accountant or a lawyer, or an overseas equivalent
- The Limited Pertnership must demonstrate an ongoing link to the UK, for example by keeping its principle place of business in the UK
- All Limited Partnerships must submit a Confirmation Statement at least every 12 months to Companies House to ensure their information is accurate and up to date
- Companies House will be given powers to strike off dissolved Limited Partnerships and Limited Partnerships which are not carrying on business
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