An Irish Limited Partnership is a business structure in which some members have limited liability for the debts of the firm. Their liability is limited to the extent of their contribution. As with a general partnership, a limited partnership is not a separate legal entity.
The partnership must consist of at least one general partner and one limited partner. The general partner is liable for all the debts and obligations of the firm. The limited partner contributes a stated amount of capital and is not liable for debts that are beyond that amount. The limited partner must be excluded from the management of the firm and cannot have any authority to bind the other partners.
Please Note: The general partner must be a resident of the Republic of Ireland and the limited partner(s) may be foreign residents.
Limited Partnerships in Ireland should consist of no more than 20 persons. If it is a banking partnership the maximum limit is 10 persons unless it is an investment and loan finance partnership in which case there is a limit of 50 persons.
In the event of the closure of a Limited Partnership, the general partners are required to wind up its affairs unless the court otherwise orders. It is best practice to notify the Registrar of Companies of the dissolution.
Limited Partnerships in Ireland are not as popular as Limited Companies, and only a handful are registered each year. A partnership can be made up of natural persons or corporate entities. Investment Limited Partnerships (ILPs) are sometimes used in the fund’s industry, and Lawyers can now trade as Limited Liability Partnerships (LLPs) under the Legal Services Act.Contact us today for more information