Change in Liability of Partner of Limited Partnership (LP)

NGN25,000

Update a Partner’s Liability Status with CAC

In a Limited Partnership (LP), partners are designated as either General Partners (with unlimited liability and managerial control) or Limited Partners (with limited liability and no managerial role). When a partner’s liability status changes, such as a Limited Partner becoming a General Partner or vice versa, it alters the legal structure of the LP and must be formally updated with the Corporate Affairs Commission (CAC).

Service Fee (All inclusive):

NGN25,000

Modify Partner Liability in a Limited Partnership (LP) in Nigeria

Here’s how SplashDict’s CAC-accredited experts assist you:

Filing & Documentation: We handle filings and documents for Change of Partner’s Liability with CAC.
Official Update: Receive an updated CAC Status Report reflecting the new partner designation.
Transparent Pricing: Includes CAC filing fees and professional handling; no hidden charges.
Fast Processing: Completed within 2 to 7 working day(s), subject to CAC approval.
Ongoing Support: Our Chartered Secretary and corporate services team provide ongoing expert help for regulatory and statutory needs.

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Why Change a Partner’s Liability in an LP?

In a Limited Partnership (LP), liability defines both the partner’s risk exposure and management role. A General Partner has full control and unlimited liability, while a Limited Partner contributes capital, avoids management, and enjoys limited liability protection.

Partners may change their liability status such as a Limited Partner becoming a General Partner to gain control but accept more risk, or a General Partner becoming a Limited Partner to reduce personal liability but give up control.

Increased Control: Limited partners may want to become general partners to gain more control over the business’s operations and decision-making.
Reduced Risk: Conversely, a general partner might want to reduce their personal liability by becoming a limited partner, especially if they are taking on a more passive role or if the business is facing significant financial risks.
Shifting Business Needs: As the business evolves, partners’ roles and responsibilities may change, necessitating a corresponding adjustment in liability status.

Requirements for Filing Change in Liability of Partner of a Limited Partnership (LP) with CAC

LP Details: Full business name and CAC registration number.
Partner Details (for each affected partner): Full name, Current Liability Status (General Partner or Limited Partner), and New Liability Status to be adopted.
Liability Composition Compliance: Ensure the LP maintains at least one General Partner and one Limited Partner after the change.
Updated Annual Returns: Ensure all LP Annual Returns are filed before making post-registration changes.
Authorization: Application must be signed by a General Partner or authorized signatory.