3. Limited Partnership (англ. Ам.). Командитне товариство (Товариство з обмеженою відповідальністю).

The limited partnership is a contractual union of entrepreneurs participating only by way of contributions without taking direct part in the management (investors); and those who, apart from contributing, carry out direct management of the partnership and are fully liable by the partnership’s obligations with their own property (full members).

It takes at least one full member and one investor to form a limited partnership. The limited partnership is to be registered just like any unlimited partnership.

The name of the partnership includes the names of one or two full members; the including of the name of the investor into the firm’s name makes the investor equally and jointly liable by the partnership’s obligations.

4. Master Limited Partnership. Акціонерно-командитне тлвариство.

Master limited partnerships carry out business activities on the basis of a Charter and are to be registered. One or more full members and shareholders as investors make a partnership. Shares can either be sold to or distributed among the investors or quoted on the stock exchange. Full members run the partnership and are liable by the partnership’s obligations. The shareholders run the risk of devaluation of their shares. A legal person can act as a full member. Thus a master limited partnership bears characteristics both of a limited partnership and a public limited company. The advantage of a master limited partnership is in getting additional income through an issue of securities and their subsequent sale on the securities’ market. Dividends are tax exempt, so the investors are mainly attracted by a tax regime of master limited partnerships which pay only income tax.

5. Private Limited Company (англ.). Close Corporation (ам.). Акціонерна компанія з обмеженою відповідальністю. Закрита акціонерна компанія. (Товариство з обмеженою відповідальністю закритого типу.

A private limited company has the word ‘Limited’ or the abbreviation ‘Ltd’ in its name. A private limited company should be registered under the Companies Act and act in compliance with its Charter. The company is a legal person fully liable by the company’s obligations. The equity capital of the company is formed at the expense of deposits; the shareholders get a certificate of deposit which is not considered to be a security and as a rule can not be assigned to third persons without the consent of other shareholders of the company, that provides for the close character of the company. There are private limited companies with a single shareholder.

There is one more circumstance that limits the financial rights and hence production opportunities of the private limited companies: they are not allowed to issue debentures and announce public subscription for their shares.

Private limited companies keep statutory books which are not subject to public report. The number of members of the company is not large, usually consisting of close relatives or people knowing each other well, who united for business.