An unregistered partnership is a contractual agreement between two or more individuals which is only effective for a limited period; this is in contrast to a general partnership which is established for an unlimited period. The unregistered partnership is often chosen for the cooperation between two or three people, who then have joint liability and responsibility concerning their business activities.
The profits are either divided equally per capita or however it is agreed upon in the partnership agreement.
The profits are either divided equally per capita or however it is agreed upon in the partnership agreement.
Silent partnerships are also possible. These are unregistered partnerships, where one or two shareholders do not appear to participate externally. However, they do support the partnership in some or other way and are often due a share of the net income.
Unregistered partnerships are often used in the independent professions, such as architects’ offices or law firms with two or more associates. Unregistered partnerships cannot be listed in the Commercial Registry.
We offer assistance with phrasing your partnership agreement of your unregistered (silent) partnership or manage this for you.