What is an association of persons?
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 turnover limit of EUR 500 thousand. Associations of persons are legally “natural persons”.
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.
Real estate companies and asset management companies, such as family offices, with several owners are also usually managed in the form of a partnership.
In the event of growth or expansion of business activities to include trading activities, partnerships must at least change their name to partnerships, but they can also change their name to corporations.
What types of partnerships are there?
Partnerships are formally known as
- Civil law partnership (GbR)
- Partnership company (PartG)
- Silent partnership