In an LP, General Partners manage the business with unlimited liability, while Limited Partners contribute capital and have liability limited to their investment.
A Limited Partnership (LP) in Nigeria requires a minimum of two partners: at least one general partner and one limited partner.
The general partner's liability is unlimited, meaning they are personally liable for the partnership's debts. In contrast, the limited partner's liability is restricted to the amount of their capital contribution unless they become involved in managing the partnership.
The partnership name must include "Limited Partnership" or the abbreviation "LP" and is limited to a maximum of 20 partners. Limited partners act as "silent partners," contributing capital much like passive shareholders in a publicly traded corporation, but without involvement in management decisions.
We offer a range of services to make it easy for you to get started, from facilitating registration with the Corporate Affairs Commission (CAC) to obtaining your Tax Identification Number (TIN). Our comprehensive business support will ensure you have everything you need to succeed.
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Register your Limited Partnership Business in Nigeria
Here's how SplashDict's team of CAC-accredited consultants can help:
Our Process
Make Payment Online
Add the product to the cart on the product page, then proceed to checkout and complete the secured online payment.
Tell us about your business
We'll process Application
Receive your documents
Once your registration documents have been approved by the Corporate Affairs Commission (CAC), you will receive your completed business entity package by e-mail/mail.
Why choose SplashDict?
Fast
Efficiency
Reliable
Transparent pricing
Packages
Find the best package to start your business:
Standard
₦35,000
- Nigerian Limited Partnership Business Registration
- CAC Filing Fee Included
- Digital delivery of Certificate of Registration
- Digital delivery of Status report
- Digital Storage of Documents
- Tax Identification Number (TIN) inclusive
- Registered in 2-7 working days
- Lifetime Support and Assistance
Premium
₦80,000
- All included in the Standard Plan
- 1-year Full Corporate Secretarial Support
- Printed Company Documents (Certificate of Registration, Status Report)
- VAT Registration
- Business Seal
- Business Bank Account opening assistance
- Free .com or .com.ng Domain Name
Requirements for Registering a Limited Partnership in Nigeria
To complete the Registration of Your Limited Partnership Firm in Nigeria, you'll have to provide the following details upon Submission;
- Proposed Name of the Business (2 Names).
- The objectives and nature of business.
- Details of at least 2 partners (Name, address, signature, passport, I.D, phone, email, etc).
- Details of verifiable registered address and address of the head office (if different from registered address), company’s email, and phone number.
- Partnership Agreement (We can provide this).
Features of Limited Partnership Business
How does a Limited Partnership Work?
Benefits of Limited Partnership Business
Limited Partnership have several advantages that make them popular:
Examples of Limited Partnership Business
Here are some examples of Limited Partnership businesses:
- Real Estate: Real estate development projects, commercial property investments, residential property syndications.
- Venture Capital and Private Equity: Venture capital funds, private equity firms, startup incubators and accelerators.
- Film and Entertainment: Film production companies, television show productions, theater production companies.
- Oil and Gas: Oil exploration and drilling partnerships, natural gas extraction projects, pipeline construction and operation.
- Agriculture: Large-scale organic farming, vineyard and winery operations, livestock farming partnerships.
- Medical and Healthcare: Medical research and development, pharmaceutical development partnerships, medical device manufacturing.
- Restaurant and Hospitality: Restaurant chains, hotel and resort development, catering businesses.
- Renewable Energy: Solar energy projects, wind farm developments, biomass energy production.
- Publishing and Media: Book publishing houses, magazine production companies, digital content creation firms.
- Sports and Entertainment: Professional sports team ownership, event management companies, sports facility developments.
- Technology: Technology startup incubators, software development partnerships, tech-focused venture funds.
- Mining: Mineral exploration projects, mining operation partnerships, quarry developments.
- Retail: Franchise retail stores, e-commerce platform investments, specialty shop partnerships.
- Education: Private school funding partnerships, educational technology development, tutoring center franchises.
- Logistics and Transportation: Freight shipping companies, logistics management firms, transportation infrastructure projects.
- Manufacturing: Industrial manufacturing partnerships, consumer goods production, custom manufacturing firms.
- Financial Services: Investment advisory firms, hedge fund partnerships, financial technology startups.
- Construction: Commercial construction projects, residential building developments, infrastructure construction partnerships.
- Fashion and Apparel: Designer fashion lines, apparel manufacturing partnerships, retail fashion boutiques.
- Food and Beverage: Specialty food production, beverage manufacturing, gourmet food retail stores.
- Tourism and Travel: Travel agency partnerships, tour operator businesses, vacation rental developments.
- Art and Culture: Art gallery partnerships, cultural event management, museum funding projects.
These examples illustrate how limited partnerships can be utilized across various industries, combining investment opportunities with professional management.
Limited Partnership FAQs
You can find some of our most frequently asked questions below;
In simple terms, a partnership is where two or more people in business decide to join forces and work together.
The only essential component is that the partners are working together to make a profit – you can’t run a charity or club as a partnership for example.
An unincorporated business structure that two or more parties form and own together is called a partnership. These parties, called partners, may be individuals, corporations, other partnerships, or other legal entities.
Partners may contribute capital, labor, skills, and experience to the business. They may have unlimited legal liability for the actions of the partnership and its partners.
The most common type of partner is a general partner, who actively manages and exercises control over the business operations.
Limited partners have limited legal liability. This type of partner cannot manage or exercise control over the business.
Among the most common types of partnerships are general partnerships (GP), limited partnerships (LP), and limited liability partnerships (LLP).
A partnership can even start without an oral or written contract. Where there is a written contract between the partners, it is called a partnership agreement. The partners agree on the purpose of the partnership and their rights and responsibilities.
A Limited Partnership (LP) is a business structure that includes at least one general partner, who manages the business and has unlimited liability, and one or more limited partners, who invest capital and have limited liability.
General Partners: Manage the business, have unlimited liability.
Limited Partners: Provide capital, have limited liability, do not manage the business.
Benefits include legal recognition, limited liability for limited partners, easier access to capital, continuity of the business, and pass-through taxation.
Generally, no. Limited partners typically do not engage in the day-to-day management to maintain their limited liability status.
Profits and losses are shared according to the partnership agreement, which can specify any distribution method agreed upon by the partners.
The LP may dissolve unless the partnership agreement specifies otherwise or the remaining partners agree to continue the business.
Investors may choose to be limited partners to benefit from limited liability, potential returns on investment, and passive involvement without the need to manage the business.
The registration process timeline varies depending on CAC and the efficiency of processing. This is the timeline:
- Name Search and reservation: 6 - 24 hours from submission.
- Grant of Certificate of Registration: 24 -96 Hours from filing.
- Total time: Approximately 2 - 7 days.
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