Limited partnership

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A limited partnership enables you to combine the benefits of securing the partners’ personal assets (to a similar extent as in the case of a limited liability company) with cost-effective taxation (flat-rate tax of 19%), which makes it an optimal form of business activity for small and medium-sized enterprises.

The appeal of limited partnerships is reflected in the growing number of entities operating within such a framework. Limited partnerships are established for new business undertakings. In the case of entities already in operation, it is possible to change their legal form to a limited partnership.

Grant Thornton advisers provide comprehensive support in the process of designing an appropriate structure based on the limited partnership model, as well as in the process of changing the legal form. Our extensive experience based on numerous completed projects provides a foundation for making the right choice from among the available variants, and also facilitates implementation.

The scope of services offered by Grant Thornton includes:

Establishment of a limited partnership

  • comprehensive diagnosis of all material circumstances of the client’s situation in order to determine the optimal solution in terms of the ownership structure and implementation process
  • drafting and agreeing with the client the contents of the limited partnership operating agreement and, potentially, the general partner’s agreement
  • determining the principles of representation of the limited partnership (general partner’s responsibilities, scope of powers of attorney, signing powers)
  • defining the principles governing the transfer of funds to partners, taking into account their involvement in the activities of the limited partnership
  • comprehensive services related to the registration process of the limited partnership and general partner in the National Court Register, tax office, social insurance institution, statistical office, etc.

 Changing legal form to a limited partnership

  • identification of all material aspects of the change in legal form
  • recommendation regarding the approach to changing the legal form
  • preparation for the process of changing the legal form (identification of the necessary steps and obligations, determining how to interpret transactions taking place during the change process for tax purposes, including identification of potential risks)
  • development of a detailed schedule for the process and optimal delegation of tasks related to individual activities
  • drafting the necessary formal and legal documents relevant to the process (with content agreed with a notary public)
  • comprehensive services related to the registration process with the National Court Register, tax office, social insurance institution, statistical office, and other institutions
  • assistance in relations with business partners (including but not limited to banks and financial institutions, public administration bodies and registry courts)
  • consultations regarding how to reflect the change in legal form in accounting records

For more information, please feel free to contact our adviser.