1. Corporate debt liability: According to the provisions of the Partnership Enterprise Law, a limited partnership consists of a general partner and a limited partner. The general partner is jointly and severally liable for the debts of the partnership, and the limited partner is liable for the debts of the partnership to the extent of the capital contribution subscribed. It can be seen that the general partner's commitment to the company's debts is greater than that of the limited partner.
2. Transactions with this enterprise: According to the provisions of the Partnership Enterprise Law, unless otherwise agreed in the partnership agreement or agreed by all partners, the general partner may not conduct transactions with this partnership enterprise. A limited partner may conduct transactions with the limited partnership. Therefore, in related party transactions, the law allows limited partners to trade with the enterprise.
3. In terms of non-competition: According to the regulations, a limited partner can engage in business that competes with this limited partnership alone or in cooperation with others; However, unless otherwise agreed in the partnership agreement. It can be seen that the law allows limited partners to engage in business that competes with this enterprise.
LP is a limited partner, which is simply understood as an investor. A project needs to invest tens of millions or even hundreds of millions of dollars. Most investment companies have many different projects. ) and the investment company's gp doesn't have that much money or doesn't want to invest so much company money in a project in order to share risks.
Limited partners, that is, institutional investors and individual investors such as enterprises or financial and insurance institutions that participate in the investment, or those who are legally converted into limited partners with the unanimous consent of other partners, are legally recognized as partners of persons without civil capacity or with limited civil capacity. These people only bear limited liability. Limited partnership consists of general partner and limited partner. The general partner shall be jointly and severally liable for the debts of the partnership, and the limited partner shall be liable for the debts of the partnership to the extent of the capital contribution subscribed. A limited partner shall not represent the limited partnership enterprise externally without performing partnership affairs.
GP is a general partner, generally referring to the management institution or natural person of equity investment fund, abbreviated as GP in English. The general partner shall be jointly and severally liable for the debts of the partnership, and the limited partner shall be liable for the debts of the partnership to the extent of the capital contribution subscribed.