GP and LP are common technical terms in funds. Let's learn their specific meanings and differences.

GP, the full name of GeneralPartner, means general partner in Chinese, generally referring to the management institution or natural person of equity investment fund.

LP, the full name of Limitedpartner, means limited partner in Chinese, that is, institutional investors and individual investors such as enterprises or financial and insurance institutions who participate in the investment, or those who are legally converted into limited partners with the unanimous consent of other partners, are legally recognized as partners of persons with no or limited capacity for civil conduct.

After understanding the basic meaning of GP and LP, let's learn the difference between them. First of all, in terms of liability for corporate debts, limited partnership consists of general partners and limited partners. The general partner shall be jointly and severally liable for the debts of the partnership, and the limited partner shall be liable for the debts of the partnership to the extent of the capital contribution subscribed. Secondly, in terms of transactions with this enterprise, unless otherwise agreed in the partnership agreement or agreed by all partners, the general partner may not conduct transactions with this partnership enterprise, and the limited partner may conduct transactions with this limited partnership enterprise. Then, in terms of non-competition, according to the regulations, limited partners can run their own businesses, or cooperate with others to compete with limited partnerships; However, unless otherwise agreed in the partnership agreement.