Limited Partnerships

Another type of entity...

A limited partnership (LP) is a trading or investment partnership between one or more general partners (who manage the partnership) and one or more limited partners (who are investors but with no role in the partnership's management). 

The partners can be either people or corporate entities.  In Guernsey, LPs are governed by The Limited Partnerships (Guernsey) Law, 1995 (as amended) (the “LP Law”).  It is a unique entity which combines the benefits of limited liability protection for its members with a highly flexible and tax transparent corporate vehicle.  In Guernsey a limited partnership can elect whether or not to have a separate legal personality.  The latter, which must be done at the time of registration and is irrevocable, is then deemed to be a legal entity in its own right.

There are no restrictions on the type of business that a limited partnership can carry out, nor on the types of investment that can be held.  A Guernsey LP is a popular choice for private equity funds, co-investment or joint ventures and special purpose asset-holding vehicles, particularly where tax transparency is required.  

The general partner is liable for the debts of the LP without limitation and is often structured as a limited liability company.   

Any property of the LP which is held by the general partner is done so on trust as an asset of the limited partnership and gives limited partners the right to share in the profits of the limited partnership.

NWH Global can incorporate companies that can act as general partner or limited partner.

If this is of interest to you, please do get in touch and a member of our team will be happy to help.