Download this Limited Partnership Certificate Template in PDF Format to fill and print easily.
When we talk about partnerships in businesses, there are generally two types including; general partnership and limited partnership. In the general partnership, all the partners share the same rights and ownership on the business and equally responsible for all the debts and liabilities of the company along with sharing the same amount of profit and loss in the business. General partners financially help the business along with taking interest in the regular operations and important decisions.
On the other hand, in limited partnership, there is at least one limited partner with one or more general partners. The limited partner invests in the business and takes his profit but isn’t liable for the debts and liabilities of the business. The certificate that is presented in the local trade department in order to legalize the limited partnership is known as the certificate of limited partnership.
Brief description of the Certificate of Limited Partnership:
In general partnership, the owners or partners of a company are liable for every operation happening in the business and they are also held responsible if there is any liability but unlike that, the limited partnership gives limited rights to the partners and as advantage, they can have the profit from the business without any liability or debt responsibility.
This means that if there are general and limited partners in a company, in case of a liability, only the general partners will be held responsible and the limited partners won’t be harmed or held responsible. But, in order to do so, the company and its owners are legally required to declare their business as the limited liability company or LLC and in order to do so, they are required to file an application in the local trade department which is also known as the certificate of limited partnership.
With this certificate, the owners of a company declare that they have limited partners and at least one general partner in the company who takes all the responsibility of the operations and liabilities of the business and in case anything happens, the limited partners won’t be held responsible.
Essential elements to include in the Certificate of Limited Partnership:
- Name of the company/business
- Name of the general partner(s) or owner(s)
- Details of the business with its regular operations
- Name(s) of the limited partners in the company
- The rights and ownership of the limited partners in the company
- Date when the limited partnership is signed between the partners
- Signature of the trading department officer or clerk
- Signature of all the partners both general and limited
Importance and uses of the Certificate of Limited Partnership:
There are many advantages of the limited partnership but the most important thing about this partnership is that when limited partners are added in the business, they can share the profit without worrying about the liabilities and even if a limited partner decides to leave the company, there is no need to dissolve the partnership but he can be let go without any legal presentation or other procedures involved in the general partnership.
Here is preview of a Free Sample Limited Partnership Certificate Template as Fillable PDF Form,
Here is download link for this Limited Partnership Certificate Template,