There is a rising popularity of limited partnership fund (LPF) in Hong Kong given that the LPF HK outperform other offshore funds. However, seldom do investors know the general requirements of LPF setup.
The first thing is that LPF HK should be in line with the definition of “fund” in section 3 of the Bill for the sake of successful setup. Apart from it, the limited partnership fund should be governed by a limited partnership agreement so as to fulfill the laws and regulation. For the composition of the fund, there are a few parties required namely a General Partner with unlimited liability to hold liable for all debts and liabilities of the fund and a Limited Partner with limited liability. The ultimate requirement is that the office for the fund should be located in Hong Kong, ensuring effective and timely communications.