Associations of persons are small commercial companies that are not required to be registered with the Commercial Register. This is possible if the association of persons does not conduct any commercial business and remains below a legally defined turnover limit. Partnerships are formally managed as a civil law partnership or as a partnership company. The partnership can also be a dormant partnership, e.g. a partnership in which a partner holds an interest in another company.
The form of an association of persons is recommended for the start of joint self-employment by several persons who wish to carry out commercial or freelance activities together. In the event of growth or expansion of business activities to include trading activities, associations of persons must at least change their name to partnerships, but they may also change their name to UID FEHLT!.
Real estate companies and asset management companies, such as family offices, with several owners are also usually managed in the form of a civil law partnership.
Associations of persons are legally seen as “natural persons”.