Limited partnership (CV)

As managing partner of a limited partnership, you are personally liable for the debts of the limited partnership. If you are a limited partner, you are only liable for the amount you contributed in the limited partnership. You will not receive interest on the money you contributed to the limited partnership.

In a limited partnership (with more than one managing partner) there are separate assets of the limited partnership, that are primarily intended for business creditors. Private creditors cannot recover from these assets. However, the business creditors can recover from the private assets of the partners, if the partnership’s assets are insufficient.

A limited partner has to comply with a number of conditions not to be considered a managing partner:

• The limited partner cannot act publicly as a managing partner, so he cannot conduct acts of management or disposition.
• The limited partner’s own name cannot appear in the name of the partnership. This would make it appear that the limited partner is a managing, and therefore, liable partner. From this rule can be deviated in certain circumstances.

Marks Wachters notarissen advises on starting up a limited partnership and on drawing up a proper agreement in which the rights and obligations of the partners are recorded in writing. We can also help you in drawing up general terms and conditions, making a proper order confirmation or with general business issues.