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The New Zealand Limited Partnership is governed by a modern regulatory regime deliberately introduced to make New Zealand more attractive to overseas jurisdictions. The Limited Partnership structure provides the advantages of separate legal personality, look-through treatment for tax purposes, limited liability (for limited partners) and no public record of limited partners’ details.
The criteria for a Limited Partnership include:
- There must be at least one General Partner and one Limited Partner at all times.
- At least one director must be resident in New Zealand.
- A partnership deed must be executed.
- Limited Partners can be involved in certain safe harbour activities only.
- The General Partner is responsible for the day-to-day management of the Limited Partnership.
- Details of Limited Partners are not publicly available.
- Provided there is no New Zealand sourced income, Limited Partners pay nil tax in New Zealand.
Income and losses flow through to the Limited Partners in their own jurisdictions. Provided there is no New Zealand source, no income or other tax is payable in New Zealand.
In summary, the key advantages of a New Zealand Limited Partnership include:
- Separate legal personality;
- Limited liability for Limited Partners;
- Flow through tax treatment;
- Limited Partners’ details remain discrete; and
- Flexibility of membership.
The New Zealand Limited Partnership is a tax efficient and flexible vehicle particularly suitable for multiple participants with varying contributions to the partnership, looking for a discrete look-through vehicle for tax purposes.
The information in this document is not advice of any kind but general information only and should not be relied on as legal advice. Kensington Trust Group recommends seeking professional advice on legal or tax issues affecting you before relying on it. While Kensington Trust Group tries to ensure that the content of this document is accurate, adequate or complete, it does not represent or warrant, express or implied, its accuracy, correctness, completeness or use of any of the information. Kensington Trust Group does not assume legal liability for any loss suffered as a result of or in relation to the use of this document. To the extent permitted by law, Kensington Trust Group excludes any liability for negligence, for any loss, including indirect or consequential damages arising from or in relation to the use of this document.