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Commercial Companies
Limited Partnership Company
Limited Partnership Company Services in Abu Dhabi
The Limited Partnership Company is another type of business entity available in the United Arab Emirates. In this company, there are two types of partners: general partners and limited partners. The general partners are fully liable for the company’s debts and obligations, while the limited partners’ liability is restricted to the amount of their investment in the company.
Features of the Limited Partnership Company
General and Limited Partners
The company consists of both general partners, who actively manage the business and have unlimited liability, and limited partners, who are passive investors with limited liability.
Liability Structure
General partners bear personal responsibility for the company’s debts and actions, while limited partners have limited liability, protecting their personal assets.
Investment Division
The capital of the company is divided among the partners based on their roles and contribution. General partners invest their skills and labor, while limited partners contribute financially.
Decision Making
General partners have authority in managing the company and making important decisions, while limited partners have limited involvement in the company’s operations.
Flexibility
Limited Partnership Companies offer flexibility in the ownership structure, allowing different types of partners to participate in the business.
Duration and Continuity
The company’s existence is not affected by the withdrawal or death of limited partners, ensuring continuity and stability.
At Abeer Al-Dahmani Advocates & Legal Consultancy, we provide the necessary legal support and advice for the establishment and management of Limited Partnership Companies. We assist our clients in understanding the requirements for forming such companies and complying with the applicable laws and regulations in the UAE.
Whether you are a general partner or a limited partner, we ensure that your rights and interests are protected, and we strive to achieve the success and longevity of your partnership business.At Abeer Al-Dahmani Advocates & Legal Consultancy, we provide the necessary legal support and advice for the establishment and management of Limited Partnership Companies.
We assist our clients in understanding the requirements for forming such companies and complying with the applicable laws and regulations in the UAE. Whether you are a general partner or a limited partner, we ensure that your rights and interests are protected, and we strive to achieve the success and longevity of your partnership business.
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FAQ
Limited Partnership Company Services Frequently Asked Questions
What is a Limited Partnership Company and what is its nature?
A Limited Partnership Company is a type of business entity where the company is formed by two or more partners, consisting of at least one general partner and one limited partner. The general partner has unlimited liability for the company’s debts and obligations, while the limited partner’s liability is limited to the amount of their investment in the company.
What activities can a Limited Partnership Company engage in?
A Limited Partnership Company can engage in various business activities, similar to other types of companies. However, the roles and responsibilities of the general and limited partners are defined based on their respective contributions to the partnership.
Can a Limited Partnership Company distribute profits to partners?
Yes, a Limited Partnership Company can distribute profits among the partners based on the agreed-upon terms in the partnership agreement. The distribution of profits is usually proportional to each partner’s capital contribution or as specified in the partnership contract.
Is the Limited Partnership Company responsible for the partners' actions?
The general partner of a Limited Partnership Company bears personal liability for the company’s debts and actions, while the limited partners have limited liability. Limited partners are not usually held personally responsible for the company’s obligations beyond their investment.
What are the initial steps to establish a Limited Partnership Company?
To establish a Limited Partnership Company, you need to choose your partners and determine their roles, contributions, and profit-sharing arrangements. Drafting a comprehensive partnership agreement that outlines the company’s structure, responsibilities, and decision-making process is essential. Then, you can register the company with the appropriate government authorities and fulfill any other legal requirements.
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