Types of business organisations available
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Limited Partnership (LP)
Limited Partnerships are useful in “labour- capital” partnerships where one or more of the financial backers prefers to contribute money or resources while the other partner performs the work.
The structure must comprise at least one or more general partners and one or more limited partners. The LP and each partner is required to be registered with Accounting and Corporate Regulatory Authority (ACRA). An LP does not have a separate legal entity from its partners.
The LPA requires that the name of the LP contains the words “Limited Partnership” or “LP” in order to put third parties on notice of the limited liability status of its limited partners. General Partners are responsible for the day-to-day management and operation (liable for the debt/obligations).
Limited Partners play a passive role and are limited to the extent of their investment in the LP. Whilst an LP is not required to file its account or have them audited, it is required to keep proper accounting and other records that will sufficiently explain its transactions and financial position.
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