Partnership

There are several types of partnerships recognized for naming conventions of a company. The main types of partnerships are general partnerships, limited partnerships, and limited liability partnerships (LLPs).

General Partnership:

The name of a general partnership must include the names of all partners or a fictitious name registered with the Accounting and Corporate Regulatory Authority (ACRA). In a general partnership, all partners have unlimited personal liability for the debts and obligations of the partnership. Each partner is also personally liable for the actions of other partners.

Limited Partnership:

The name of a limited partnership must include the names of one or more general partners. The name must also end with “Limited Partnership” or “LP.” A limited partnership consists of one or more general partners who have unlimited liability, along with one or more limited partners whose liability is limited to their investment in the partnership. Limited partners are typically passive investors and do not participate in the management of the partnership.

Limited Liability Partnership (LLP):

The name of an LLP must end with “Limited Liability Partnership” or “LLP.” An LLP is a separate legal entity from its partners. It offers limited liability protection to all partners, shielding them from personal liability for the partnership’s debts and liabilities. Each partner’s liability is generally limited to their agreed contribution to the LLP, and they are not personally responsible for the actions of other partners.

The main difference between these partnership types lies in the extent of personal liability borne by the partners. In a general partnership, partners have unlimited liability, while limited partners in a limited partnership have liability limited to their investment. LLPs provide the most extensive liability protection, where all partners have limited liability.