Limited Partnerships are a form of partnership comprising General Partners (who are liable jointly and severally with other General Partners and the Limited Partnership itself for all the debts and liabilities incurred by the partnership) and Limited Partners (whose liability for the debts and liabilities of the partnership is limited to the value of their financial contribution - provided they haven´t been involved in its day to day management).

Any person (legal or natural) may be a partner of a Limited Partnership. General Partners are involved in the day to day management of the Limited Partnership whereas Limited Partners are prevented from this and are restricted in the activities in which they can be involved. The activities in which Limited Partners may engage are called safe harbour activities in New Zealand and include, but are not restricted to, taking part in decisions about the variation or replacement of the partnership agreement, whether to approve or veto an investment proposal (under certain conditions), whether the Limited Partnership should be terminated or not and whether the general nature of the Limited Partnership should change.

The New Zealand Limited Partnerships Act 2008 came into force in May 2008 with the primary objective of introducing a new regime to enable New Zealand businesses to compete more effectively in the international arena for venture capital funds so facilitating sustainable growth in the country´s venture capital and private equity industries. The Act provides for the registration of Limited Partnerships and Overseas Limited Partnerships, a searchable Register of which is administered by the New Zealand Companies Office.