The partnership is a form of cooperation between two or more persons (partners) who exercise a profession under a joint name. The objective is to share the advantage that derives from that.
Who is involved?
The ultimate right of decision-making rests with the partners in the partnership. A partnership can take persons into employment and/or employ contracted parties, volunteers and trainees who work for the partnership.
Who disposes of the capital?
A professional partnership records the agreements made between the partners in writing, such as on the capital to be contributed and the division of the profit. An accountant, legal advisor or solicitor can assist in drawing up a partnership contract. The Tax Office treats every partner in principle as a separate self-employed entrepreneur.
Who is liable?
The partnership is a legal form without being a person at law. That means that the partners are liable with their private capital for the debts of the partnership. A partner who is empowered to do so can conclude an agreement on behalf of the partnership, after which all partners are liable for equal shares (and thus not for the whole). That is thus different from the case of a dual partnership. If a partner acts without authorisation, the other partners are in principle not liable.