A limited partnership (LP) is a form of business partnership in which one or more general partners manage the day-to-day operations of the business and have unlimited liability for the debts and obligations of the partnership, while one or more limited partners contribute capital to the business but have limited liability for the debts and obligations of the partnership].

In a limited partnership, the limited partners are usually not involved in the management of the business and are not liable for the debts and liabilities of the partnership in excess of the capital they have contributed. Common partners, on the other hand, have unlimited liability for the debts and obligations of the partnership and are responsible for the management of the business.

Limited partnerships are often used in real estate, technology startups, and other types of investment partnerships, where limited partners want to invest in the partnership without being responsible for the day-to-day management of the business and risking more than their initial capital investment.

General partners in all major aspects are in the same legal position as partners in a regular company: they have managerial control over the company, share the right to use the property of the partnership, share the company's profits in certain proportions and are jointly and severally liable for the debts of the partnership.

It is impossible to combine general and limited partnership.

Limited partners:

Contribute funds or property to the business when it is created
They are responsible only for debts within the amount they have contributed. General partners, in turn, are responsible for any debts that the business cannot pay.
They cannot manage the business, unlike general partners, who control and manage the business.
They cannot withdraw their initial share.
Must register with the relevant authority (e.g. HMRC) for tax purposes.