The new Companies Law (1443H) provides for the limited partnership as one of the main legal forms. It is one of the most common company types in Saudi Arabia for investors who wish to contribute capital without taking on management or joint liability for debts. Its partners are divided into general partners (jointly liable) and limited partners (liable only up to their contribution), making it an ideal vehicle for passive investment. In this article Shehab Alsaleh Lawyers & Legal Advisors<\/a> explains the concept, the incorporation requirements, the partners’ powers and how the company is managed under the Law.<\/p>\n Article 51<\/strong> of the Companies Law defines the limited partnership as:<\/p>\n A company consisting of two classes of partners: one including at least one general partner (natural or legal person) who is personally and jointly liable for the company’s debts and obligations, and another including at least one limited partner (natural or legal person) who is liable for the debts only to the extent of their share in the capital; the limited partner does not acquire the status of a trader.<\/p><\/blockquote>\n For the full official text of the Companies Law: Laws portal \u2013 Bureau of Experts at the Council of Ministers<\/a><\/p>\n Article 52<\/strong> provides that the articles of association must include, in particular:<\/p>\n The limited partner may:<\/p>\n The general partner (or an appointed manager) is responsible for management and represents the company before the courts and third parties, unless the articles restrict those powers. The company is bound by the manager’s acts within its objects, unless the counterparty acted in bad faith.<\/p>\n Partners’ resolutions are passed by a numerical majority, and amending the articles requires unanimity unless the articles provide otherwise.<\/p>\n Without the partners’ approval or an express provision in the articles, the manager may not:<\/p>\n We provide an integrated legal solution to establish your company quickly and in full compliance:<\/p>\n To establish a secure and legally sound limited partnership, contact us through our contact page<\/a>.<\/p>\nThe Concept of the Limited Partnership<\/h2>\n
Types of Partners in a Limited Partnership<\/h2>\n
1. The General Partner<\/h3>\n
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2. The Limited Partner<\/h3>\n
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Contents of the Articles of Association<\/h2>\n
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Powers of the Limited Partner<\/h2>\n
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Management of the Limited Partnership<\/h2>\n
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How Can Shehab Alsaleh Law Firm Help You Establish a Limited Partnership?<\/h2>\n
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