Two new business ownership types unveiled by CAC

Garba Abubakar, the Registrar-General, Corporate Affairs Commission (CAC) says the commission has commenced the registration of two new types of business registrations pursuant to CAMA, 2020.

This was disclosed in a statement signed by Rasheed Mahe, CAC’s Head of Media.

This is coming after the successful deployment of the Online Application for the two new business types, known as Limited Liability Partnerships (LLPs) and Limited Partnerships (LPs).

Abubakar described the LLP as a partnership arrangement with a legal personality, separate from the partners.

According to him, the liabilities of the partners of an LLP were limited to the amount agreed to be contributed or outstanding in the event of winding up.

He noted that an LLP shall have at least two “designated partners” who would be responsible for compliance with the requirements of the Act by the LLP.

The designated partners should be individuals, at least one of whom must be resident in Nigeria.

LP is a partnership arrangement with at least one general partner and at least one limited partner, the registar-general said.

Abubakar noted that the liabilities of a general partner were unlimited, while the liabilities of a limited partner were limited, unless he partakes in the management of the partnership.

According to the statement, an LP should not consist of more than 20 persons and the name of an LP should end with the word “Limited Partnership” or the abbreviation “LP”.