A Basic Guide to UK Limited Partnership

What is limited partnership? How can one register for a UK limited partnership? Answers to these questions are discussed below. Sometimes, people tend to start working together to work towards a better future. This can be done by sharing the responsibilities in managing the expenses and sharing the revenue based on how much they have invested in or how much work they have done.

UK limited partnership refers two groups where one group which consists of one or more person are called general partners. They are legally responsible for all debts of the firm they are associated to. The other group too consists of one or more people are called limited partners. They contribute a sum of money to the company which serve as a capital. Limited partners are not responsible for all debts and obligations of the company. The restrictions of limited partners are that they may not be able to retrieve back his contribution to the partnership. They are not allowed to take part in managing business nor do they have the power to restrict the company. However, they become liable or responsible on the debts of the company if the amount of contribution is to be drawn out.

Any individual or a legal company is able to join in a limited partnership. But they can either become general partners or limited partners. They are not allowed to be both at the same time. For UK limited partnership, it has to be registered under Limited Partnerships Act 1907. You must hand in the application form signed by all involved partners to the Registrar. The following information must be included in the form:

1. The company’s name
2. The basic or general nature of conducted business
3. Full name for both general and limited partners, separating them
4. Company’s main address
5. Sum contributed by each partner
6. The terms and condition the partners are bound to Limited partnership can be dissolved.

Though it must first have received every partner’s consent and is not to be dissolved by notice.