PART D of CAMA 2020 provides for the registration of a Limited Partnership (LP).

The major distinguishing factor is that while an LLP limits liability for all partners, an LP only limits it for some.

In an LP, at least one owner must be on record as the general partner with unlimited liability, and at least one partner must be listed as a limited partner with limited liability.

Section 795 (3) of the CAMA 2020 provides that a limited partnership shall consist of one or more persons called general partners, who shall be liable for all debts and obligations of the firm, and one or more persons called limited partners.

The Act further limits the number of partners in an LP to a maximum of twenty (20), while an LLP does not have such limit. In addition, the limited partner cannot have significant money invested in or hold major decision making power in the business. If they do, they risk losing their status as a limited partner and forfeiting their limited liability status.

By Section 797(1) of the Act, to operate as a limited partnership you must be registered with the Commission. Reach out to us today for your registration needs for all business structures. Visit our website at www.businesslegal.ng or send us a direct message.