GENERAL PARTNERSHIP LIMITED PARTNERSHIP

Creation Maybe constituted in any Formed by compliance in

form good faith with
statutory requirements
Contribution The general partners Limited partners must
contribute money, contribute cash,
property, or industry property, or both but
not industry or services
Membership All are general partners There are at least one
general partner and one
limited partner
Extent of Liability All partners are liable The general partners are
to the extent of their liable up to the extent
separate property after of their separate
the partnership assets property, while the
have been exhausted limited partners are
liable only to the
extent of their
investment in the
partnership
Management Right All general partners are Limited partner has no
managers and have an participation in the
equal right in the partnership and only
management of the general partners have
business unless management right
stipulated otherwise
Prohibition to engage in A general partner is There is no prohibition
other business prohibited from engaging against engaging in
in any operation which business
is of the kind of
business in which the
partnership is engaged
if he is a capitalist
partner while the
industrial partner is
absolutely prohibited to
engage in other kinds of
business
Assignment of interest The interest is not Interest is assignable
assignable unless
consented to by all of
the other partners
Duration The retirement, death, The retirement, death,
insolvency, insanity, or insolvency, insanity, or
solvency of a partner solvency of a partner
dissolves the will not dissolve the
partnership partnership
Firm name It may or may not The firm name must be
include the name of one followed by the word
or more of the partners “Limited”. The surname
of a limited partner
shall not appear in the
partnership name