Definition: [ˈlɪmɪtɪd ˈpɑːrtnərʃɪp] is an organizational and legal form of business that combines properties of traditional association and company. In unification with LP there must be at least one general partner with unlimited liability. The responsibility of all other partners could be restrained by their contribution to the whole capital. The principal members are responsible for all debts of the firm. Limited participants contribute the declared investments, being not accountable for the charges of partnership other than within the amount paid.
Limited partnership in Sentences:
- Limited partnerships must be registered with the Irish Registration Office (CRO) in accordance with the Law of 1907.
- The liability of a partner in a limited partnership cannot exceed the amount of currency invested in the business, and also refers to personal guarantees attracted to finance.
Synonyms and related words: restricted partnership, restrained partnership, bound partnership
