What is a business partnership?

Business Partnerships are companies registered with the Commercial Register, but, according to the respective national law, they are not necessarily “legal entities”. Therefore, their partners are personally liable. The partnership form is often chosen for commercial transactions. Formally, these companies are then called partnerships. They take the form of a limited partnership or a general partnership.

Whereas in a general partnership all partners are personally liable without limitation on a pro rata basis with their own assets, in a limited partnership only one partner, the general partner, is jointly and severally liable without limitation with his own assets and the other partners only with their capital contribution paid into the partnership. In order to avoid full liability as a general partner, you can appoint a limited liability company as general partner and thereby limit the liability to the capital paid into this limited liability company.


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