Simple partnership.

Legal entities, which are registered as a juridical person and / or individual entrepreneurs, may enter a simple partnership (or a joint venture) and thereby agree to merge their contributions and act together without the formation of a legal person.

This agreement need not be registered and the partnership may therefore be "silent". The property contributed by the partners, as well as products manufactured as a result of the joint activity and revenues derived are as a rule deemed to be their collectively shared property.

When conducting joint business, each partner has the right to act in the name of all the partners, although partners may agree that the conduct of business is affected by particular partners or jointly by all the partners.

For tax purposes the simple partnership is regarded as a "flow-through" entity and profits arising to it are taxed directly in the hands of the partners.

 

 

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