The limited partnership is one of the companies which can be used for conducting business activity in Poland. Read the following article and learn why more and more of entrepreneurs decide to establish the limited partnership.
Partners in limited partnership
In the limited partnership must be at least two partners, from which one is liable for the company obligations in the unrestricted way with entire wealth (general partner), while liability of the second one is limited up to the so-called limited liability amount (limited partner). The general partner manages the limited partnership, as well as represents it outside. The limited partner is a passive partner of the company who only receives incomes from the company.
Incorporation of the limited partnership
The limited partnership can be incorporated through the Internet or by signing articles of association at the notary. In both cases the company is incorporated at the moment of entry into the register of entrepreneurs of the National Court Register, what in case of the company established through the Internet is usually taking place into sequences of a few days.
Limited partnership agreement signed in form of the notarial deed allows for bigger interference in contents of articles of incorporation than it is taking place in case of the company incorporated through the Internet. Thanks to that future partners can create its provisions in the way adjusted to their needs and character of the company business activity.
Advantages of the limited partnership
The limited partnership combines advantages of the limited liability company and general partnership. Similarly to the limited liability company the limited partnership allows for limitation of liability for obligations of the company with private wealth of it partners. Due to possibility of incorporation limited partnership in which the general partner is the limited liability company the responsibility with private wealth of partners of such a company is almost completely turned off. Such a company is more and more popular in Poland. Simultaneously incomes of the limited partnership are not levied with a corporate income tax, and therefore incomes of the company are only levied with a tax by partners of the company. What is more, partners of the limited partnership can choose taxing incomes from the company by so-called flat tax with the rate of the 19% of incomes irrespective of the size of incomes received from the company.
If you are thinking about establishing the limited partnership or you have other questions related to the company law or taxes get in touch with experts from the PragmatIQ Legal Office.