Study On The Localization Of Limited Partnership In China

As an oldest forms of business organization, limited partnership first originated from Kangmanda leases in the 11th century, as early as in 1673, two join company has been stipulated in "French commercial company law" in French, so limited partnership has a long historical origin. And limited partnership integrates the merits of the limited liability company and the general partnership, is a kind of special partnership, as well similar with company legal person, and limited partnership reflects dual attributes of individual combination and fund combination, so until now, limited partnership or two joint company widely exists in most parts of the world ,and was generally welcomed by investors.Before China's reform and opening, partnership including limited partnership is not consistent with China's highly centralized planned economy system and unitary public ownership, so until 1997 our country confirms the legitimacy of the general partner on the legal recognition, and the law confirms the legitimacy of limited partnership in 2007. In fact, before 2007 that a new partnerships act was promulgated, parochial act about limited partnership is in existence in china, but limited partnership was limited to the scope of the application on risk investment industry, and the legality of these parochial acts has been subject to dispute. After the promulgation of new partnership act, limited partnerships in real significance appears in China, year of 2007 was also known as the first year of limited partnership. While we have already established a limited partnership as legal status, but we should recognize that our country's limited partnership is actually the transplant from the United States and Britain , China's national conditions is not the same as with other countries, so localization issues will come into being , after the implementation of a new partnership act, limited partnership will have a beneficial effect or adverse effects on the country's economy, how to guard against those adversely affected, it is the concern in this paper .This paper firstly introduces to the basic issues about limited partnership, including the definition of limited partnership, characteristics of limited partnership, the difference between limited partnership and the dormant partnership, limited liability partnership, companies, as well as limited partner on the venture capital industry's role and international research on the limited partnership. On the basis of the above in the introduction the paper discuss the economic reason we introduce limited partnerships mechanism and Comparative analysis of the macroeconomic environment of limited partnership of in China and United StatesAt last the article focus on the easily issues on the localization process of limited partnership, and give solution strategy on these issues. I use economics theories and methods on analyses of this paper, for example, game theory, cost-benefit model, theory about the institutional change, to analysis the problem on localization of limited partnership in China. The purpose of this paper is by the article analysis, I hope that the investor and the organ of government supervision should attach importance to localization problem on limited partnership in China's process, we should combine limited partnerships with China's national conditions, we should strive to prevent and eliminate localization defects problem on limited partnership in China's process, and let the limited partnership make greater contributions in China's economy.