Irish Limited Partnership (LP)
A limited partnership (LP) is a unique form of partnership, allowing for certain partners (the limited partners) to enjoy limited liability. This is a departure from the common law principle of a partnership and is regulated by the Limited Partnership Act, 1907. Other types of partnerships include; Investment Limited Partnerships (ILPs) which are sometimes used in the fund’s industry, and Limited Liability Partnerships (LLPs) which Lawyers can now trade under the Legal Services Act.
A limited partnership may have up to 20 partners with some exceptions. There must be at least one general partner having unlimited liability, and both general and limited partners may be an individual or a company.
Each limited partner must make a capital contribution to the partnership whereafter their liability is limited to that amount of the capital contribution– this can be as low as €1.00.
An important consideration is that limited partners are not permitted to be a part of the management of the firm and if they are, they will automatically be exposed to unlimited liability as if they were a general partner.
A further consideration is that a limited partnership does not have a separate legal personality – but still provides the protection of limited liability for the limited partner(s), who are not involved in the management of the firm.
One of the most valuable aspects of these partnerships is that they are tax transparent meaning that the partnership is not taxable – each partner remains responsible for their own tax affairs, in the jurisdiction in which they are tax residents.
In addition to the elements highlighted above, limited partnerships are also exempt from needing to make filings with the Register of Beneficial Ownership; are generally not required to file accounts (subject to certain exceptions), and are also under no obligation to file updated information with the Companies registration office (although it is considered good practice to update every change).
Limited partnerships listed on the register in Ireland carry out a range of activities including property investment, film making, fund management, aviation, and general and wholesale trading. A limited partnership can be simple with a small number of partners or one element of a multi-layered corporate structure.
This post highlights some of the key reasons why Irish limited partnerships have seen an increased number of registrations over the last three years. If you are considering registering an Irish LP or another company type, please don’t hesitate to call us on +353 1 6461625 or complete our contact us form and one of team members will be in contact within one business day. We can ensure that your partnership is registered, maintained, and kept compliant for the duration of its activities.Contact us now for further details