Limited Partnerships for NZ

On Friday a new and helpful law for NZ based businesses comes into effect.

“On 2 May 2008 the Limited Partnerships Act 2008 will come into force.

The Act has been introduced to promote sustainable growth* in New Zealand’s venture capital and private equity industries. (*my emphasis)

Limited Partnerships are a form of partnership involving general partners, who are liable for all the debts and liabilities of the partnership, and limited partners, who are liable to the extent of their capital contribution to the partnership.”

and …..

“Features of Limited Partnerships include:

  • separate legal personality
  • an indefinite lifespan if desired
  • a list of activities that the limited partners can be involved in while not participating in the management of the Limited Partnership (safe harbour activities)
  • tax treatment for Limited Partnerships.”

for more on this and the new R & D (15%) Rebates scheme check R&D Tax Credits and Knowledge Hunting which are some notes I made at a recent event.