A limited partnership is a type of legal entity in which there are at least two partners, one of whom has limited liability and one who does not. The number of partners can be greater than two, but each is either a personally liable partner (limited liability) or a limited partner or silent partner (limited liability). It is important to note that for a limited partnership to be considered a limited partnership, there must be both general partners and silent partners.

As the name suggests, a limited partnership is a form of partnership, meaning there are at least two parties (partners) who agree to work together and share liability and income to pursue a common goal. While some aspects of the design depend on the type of partnership (e.g. liability in a limited partnership), the actual extent of cooperation, the extent of liability and the distribution of income can be regulated in a partnership agreement according to the wishes of the partners.

Owner of a limited partnership
By definition, the owners of a limited partnership fall into two categories: general partners and dormant or limited partners. Each party must be represented by at least one partner. The difference between the parties lies in the extent of their participation in governance, liability and sharing of corporate profits.

Complementary
General partners of a limited partnership are those who have unlimited liability for the company's liabilities. You have the right to participate in the management of the company, to vote on decisions and to have a say in the overall course of business development. General partners are usually also those who represent the company towards third parties, as only they can enter into contracts with third parties on behalf of the company.

Limited Partners
Limited partners or silent partners in a limited partnership are those whose liability for the liabilities of the partnership is limited to the amount of their contributions. In other words, their liability does not exceed the amount they have invested in the company. As a result, limited partners are better protected in the event of poor business planning and failure, but their influence within the partnership is also limited. Limited partners cannot participate in the management of the company, i. H. they can invest, but they cannot control the day-to-day operations or management of their investments.