Partners in a Limited Partnership

Every LP must have at least (i) one general partner and (ii) one limited partner. There is no limit to the maximum number of partners. The general partner can be an individual or a company. The limited partner can be an individual, a company or an unregistered foreign company.

General Partner

A general partner has unlimited liability and can take part in the management of an LP. This means a general partner is responsible for the actions of the LP and is liable for all debts and obligations the LP incurs.

Limited Partner

A limited partner’s liability on the other hand is capped at the amount of his agreed investment in the LP. He is not liable for any debts and obligations of the LP beyond this amount.

A limited partner shall not take part in the management of the LP. If he does, he will be treated as a general partner with unlimited personal liability.