In general, a partnership is a business owned by two or more people. There are three forms of partnership: general partnership, joint venture and limited partnership. The three forms are different in different aspects, but they also have similar characteristics. The interests of the partnership (including the interests of the limited partners) are largely protected by the pricing mechanism. The settlement decision limits the creditor of a debtor partner or debtor member to the debtor`s share in the distributions, without giving the creditor voting rights or management rights. [Citation required] A Limited Liability Partnership (LLP) is a type of partnership in which all partners have limited liability. All partners can also participate in management activities. This situation is different from that of a limited partnership, where at least one supplement must be held liable on an unlimited basis and where limited partners cannot be part of management. In 1999, the Japanese parliament passed a law, allowing the creation of “limited partnerships for investments” (投資事業有限責任組合, tōshi jigyō yūgen sekinin kumiai). These are very similar to Anglo-American limited partnerships, as they adopt most of the provisions of the general law of partnerships, but provide for limited liability for certain partners. The profits of an investment limited partnership are transferred in proportion to their share of investment to all partners. For tax purposes, profits and losses are only transferred to the additional partners if the partnership has negative equity (i.e.: liabilities greater than the asset; However, profits and losses, while the partnership has positive equity, are shared equally. When the partnership is created or if the composition of the company changes, limited partnerships must normally file documents with the competent national registration body.
Sponsors must expressly disclose their status in their dealings with other parties, so that those parties are informed that the person negotiating with them has limited liability. It is customary for the documentation and electronic documents published by the company to contain a clear statement that identifies the legal nature of the company and for the partners to be presented separately as general and limited. . . .