Limited partnership

This term refers to the law of the country selected below.

  Czech Republic

What is a limited partnership?

Limited partnership (k. s.): This is a hybrid form of company, as at least one partner is liable for the company’s debts to a limited extent, up to the amount of its capital contribution or up to an amount specified in the memorandum of association (limited partner), whilst at least one partner has unlimited liability (general partner). The statutory body of the company consists of all the general partners, unless the memorandum of association specifies that only some of them form the statutory body.

A limited partnership may be established for the purpose of conducting business or for the purpose of managing its own assets.

What is the liability of a limited partner?

Only limited partners are obliged to make a contribution to the company. The amount of the contribution is specified in the memorandum of association. The contribution may be in cash or in kind. The obligation to make a contribution must be fulfilled in the manner and within the time limit set out in the memorandum of association, or otherwise without undue delay following the formation of the company or the partner’s admission to the company.

A limited partner is then liable for the company’s debts to a limited extent, up to the amount of its unpaid capital contribution as recorded in the Commercial Register.