GP refers to the general partner in a limited partnership.

General partners generally refer to the management institutions or natural persons of equity investment funds, and are referred to as GPs in English.

The general partners bear unlimited joint and several liability for the debts of the partnership, and the limited partners bear liability for the debts of the partnership to the extent of their subscribed capital contributions.

The difference between general partners and limited partners: (1) Responsibility for corporate debts.

According to the provisions of the Partnership Enterprise Law, a limited partnership is composed of general partners and limited partners. The general partners bear unlimited joint and several liability for the debts of the partnership, and the limited partners are limited to the amount of their subscribed capital contributions for the debts of the partnership.

Take responsibility.

It can be seen that the scope of general partners' liability for corporate debts is greater than that of limited partners.

(2) Transactions with this enterprise.

According to the "Partnership Law", unless otherwise agreed in the partnership agreement or with the unanimous consent of all partners, the general partner may not conduct transactions with the partnership.

Limited partners can conduct transactions with the limited partnership.

Therefore, in terms of related party transactions, the law allows limited partners to conduct transactions with the enterprise.

(3) In terms of non-compete.

According to regulations, limited partners may operate businesses that compete with the limited partnership on their own or in partnership with others; however, unless otherwise stipulated in the partnership agreement.

It can be seen that the law allows limited partners to engage in business that competes with the enterprise.

(4) In terms of pledge of property shares.

According to the provisions of the Partnership Enterprise Law, if a general partner pledges his share of property in a partnership, he must obtain the unanimous consent of the other partners; without the unanimous consent of the other partners, his act is invalid, thus giving rise to a threat to a bona fide third party.

If a person causes losses, the perpetrator shall bear the liability for compensation in accordance with the law.

Limited partners can pledge their share of property in the limited partnership.