How to - Limited partnership

Limited partnership

The concept of limited partnership is not recognised by Indian Law. It is prevalent in England and America and other countries. In England, the limited partnership is governed by the Partnership Act of 1907. It consists of general partners who are the main partners with exclusive right of management and their liability is unlimited. But they can take any linilted partner who contributes some capital to the Firm and whose liability is limited to that amount provided he does not participate in the management or withdraw any part of the capital contributed by him during the term of partnership. However a limited partnership is not a separate legal entity like a limited company. Generally a limited partner joins a firm to participate in a particular scheme or adventure of the firm.