Glossary

Limited partnership (komandītsabiedrība)

In Latvian: Komandītsabiedrība

Companies Updated

A limited partnership (komandītsabiedrība) is a Latvian partnership in which at least one member (the limited partner, komandīts) is liable to creditors only up to the amount of their contribution, while the other members (general partners, komplementāri) are liable without limit.

The Commercial Law rules on general partnerships apply to it unless stated otherwise. The Commercial Register records each limited partner's contribution and the total, so creditors can see how far the limited partners are liable.

The general partners represent the partnership: a limited partner has no right to represent it towards third parties. A limited partner is therefore typically an investor who shares in profit but does not run the business.

Example

In the limited partnership "Liepa un partneri", Jānis is the general partner and Ieva a limited partner with a EUR 10,000 contribution. If the partnership runs up a EUR 50,000 debt, Jānis is liable with all his property, while Ieva is liable only up to her contribution of EUR 10,000.

Legal basis

This explanation is for information and does not replace tax or legal advice. The law in its current consolidated text prevails.