General Partnership and Limited Partnership in General

A general partnership and a limited partnership are forms of business where two or more persons (partners) run a business together.

The partnership is based on trust between the partners, as each partner is personally liable for the partnership’s commitments. A limited partnership company has both general (active) and silent partners of which only the general partners are personally liable for the partnership’s liabilities. Creditors may therefore recover debts, for which the partnership is liable, from any one of the partners in a general partnership and from any one of the general partners in a limited partnership independently and these partners are liable for the debts with their personal property.