Partnerships are defined in Section 3 of the Partnerships Ordinance as the relation which subsists between persons carrying on a business in common with a view to profit. Persons who have entered into partnership with one another are called collectively a firm and the name under which their business is carried on in the firm's name.
In the TCI there are two (2) types of partnerships which can be constituted:
- Ordinary Partnerships and
- Limited Partnerships
Ordinary Partnerships are governed by the Partnership Ordinance and the common law and have not registration or filing obligations with any statutory authorities. The basis of an Ordinary Partnership renders all partners personally liable for any losses which may occur and personally benefit from all profits made in accordance to any Partnership agreements which exist among the partners.
Limited Partnership Ordinance Governs Limited Partnerships
Limited Partnerships are partnerships in which there are one (1) or more general partners and one (1) or more limited partners. General partners may be personally responsible for any debt of the firm in the event assets are insufficient to make good any debts. Limited Partners are, generally, liable for their agreed investment in the firm and nothing more.
Limited Partnerships are required by the Limited Partnership Ordinance to be registered on the Limited Partnership Register at the Companies Registry.