What is a Limited Partnership (LP) and how does it work?

Dear investors,

At Envast, each project is structured as a separate Limited Partnership (LP). At first glance, this term may seem complex, but in reality, it represents a clear and transparent cooperation model between investors and the management company. In this article, we explain in detail how a LP works, the types of participants, and what it means for you.

What is a Limited Partnership (LP)?

A Limited Partnership is a type of commercial entity regulated by the Civil Code of the Republic of Uzbekistan. It has two types of participants:

General Partner (GP) — manages the partnership and bears full liability with their own assets
Limited Partner (LP / Investor) — is liable only up to the amount of their investment and does not participate in management
💡Simply put: the General Partner is the “captain” (manages and takes full responsibility), while the Limited Partner is a “passenger” (invests capital, receives profit, but does not manage operations).

Why a Limited Partnership model?

1. Limited liability for investors

As a limited partner, your risk is limited only to the amount you invested. Even if the project incurs losses, your personal assets, home, or other property are not affected.

2. Professional management

You do not need to manage the project daily. The General Partner — a professional team — handles all operational activities: asset selection, acquisition, leasing, and documentation.

3. Legal protection

The partnership is registered with the State Tax Committee (STC), and each investor’s share is officially recorded in the founding agreement. This ensures legal protection of your rights.

4. Transparent profit distribution

Profit distribution is carried out according to a predefined formula in the charter. No party can unilaterally change the terms.

Roles in the Envast model

In the Envast platform, a separate Limited Partnership is created for each project:

General Partner (GP):	Envast team — manages the project, selects assets, handles rental and sales operations
Limited Partner (LP):	You — the investor, contributing capital and receiving profit according to your share
Activity:	Collective real estate investment

How a LP is formed

Step 1: Charter and founding agreement

All participants sign the charter and founding agreement defining shares, rights, and obligations.

Step 2: State registration

The partnership is registered with the State Tax Committee and receives its tax identification number (TIN), becoming a legal entity.

Step 3: Capital contribution

Investors transfer their contributions to the partnership’s bank account. Each contribution is officially confirmed with a certificate.

Step 4: Operational activity

The General Partner uses the collected capital to acquire and manage real estate assets such as residential complexes, commercial properties, or land plots.

Step 5: Profit distribution

On a periodic basis (semi-annually or annually), net profit is calculated and distributed among participants according to their shares.

Key differences: General Partner vs Limited Partner

Criteria	General Partner (GP)	Limited Partner (LP)
Management rights	Full	None
Liability	Unlimited (personal assets)	Limited to contribution
Profit share	Management fee + share	Share only
Eligible entity	Legal entity (company)	Individual or legal entity
Taxation	Income tax	Profit distributed after deductions

Advantages and considerations

✅ Advantages

Limited financial risk for investors
Professional project management
Low entry threshold — participation possible with small amounts
Legal structure recognized by the State Tax Committee
Diversification — participation in multiple partnerships

⚠️ Considerations

Limited partner cannot participate in management
Capital cannot be withdrawn immediately — long-term investment
Profit is not guaranteed — depends on market conditions

Your rights as an investor

As a limited partner, you have the right to:

Review financial reports of the partnership
Receive profit distributions according to your share
Transfer your share (according to charter conditions)
Receive your share of remaining assets upon liquidation
Request reports and information from the management team

🛡 Your guarantees

✅Contribution certificate for every investment
✅Transparent charter and founding agreement
✅Official state registration with STC
✅Mobile app access to real-time reporting and share tracking

Conclusion

A Limited Partnership is a legally regulated, globally recognized investment structure widely used in real estate investment. It provides reduced risk, professional management, and transparent profit distribution.

At Envast, you act as a partner in each project — while all operational, legal, and administrative processes are handled by our team on your behalf.

📱 More details: Available in the mobile app under “Profile” → “Documents” where you can download your contribution certificate, charter, and founding agreement.