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Question

Q&A Regarding Partnership Enterprise

Answer
Q:
What is a partnership enterprise?
A:
Partnership enterprise refers to the general partnership enterprise and limited partnership enterprise established in China by natural persons, corporations and other organizations according to law.

Q:
What is a general partnership enterprise?
A:
The general partnership enterprise is composed of general partners, who shall bear unlimited joint and several liability for the debts of the partnership enterprise.

Q:
What is a limited partnership enterprise?
A:
The limited partnership enterprise is composed of general partners and limited partners. The general partners shall bear unlimited joint and several liability for the debts of the partnership enterprise, and the limited partners shall be liable for the debts of the partnership enterprise to the extent of the capital contribution subscribed.

Q:
What are the conditions for establishing a general partnership enterprise?
A:
  1. There are more than two partners. A partner who is a natural person shall have full civil capacity;
  2. There is a written partnership agreement;
  3. There are capital contributions subscribed or actually paid by partners;
  4. Having the name of the partnership enterprise and the place of production and operation;
  5. The name of the partnership enterprise shall be marked with the words "general partnership";
  6. Other conditions stipulated by laws and administrative regulations.

Q:
What are the conditions for establishing a special general partnership enterprise?
A:
  1. Professional service organizations that provide paid services  with professional knowledge and expertise to customers can be established as special general partnership enterprise;
  2. There are more than two partners. A partner who is a natural person shall have full civil capacity;
  3. There is a written partnership agreement;
  4. There are capital contributions subscribed or actually paid by partners;
  5. Having the name of the partnership enterprise and the place of production and operation;
  6. The name of the partnership enterprise shall be marked with the words "special general partnership";
  7. Other conditions stipulated by laws and administrative regulations.

Q:
What are the conditions for establishing a limited partnership enterprise?
A:
  1. The limited partnership enterprise shall be established by more than two and less than fifty partners. A partner who is a natural person shall have full civil capacity;
  2. The limited partnership enterprise shall have at least one general partner;
  3. There is a written partnership agreement;
  4. There are capital contributions subscribed or actually paid by partners;
  5. Having the name of the partnership enterprise and the place of production and operation;
  6. The name of the partnership enterprise shall be marked with the words "limited partnership";
  7. Other conditions stipulated by laws and administrative regulations.

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