General Partnership Registration


What is a general partnership company

It is a company created by two or more persons under a specific name for executing commercial affairs with joint liability (clause 116 of the Commercial Law).

How is the each partner’s liability at a general partnership company

It is in the form of joint liability and they shall be, individually, liable for the payment of all the debts and company commitments (clause 116 of the Commercial Law).

What is the operation subject at a general partnership company

It is merely a business (clause 116 of the Commercial Law).

What is the minimum number of members for the establishment of a general partnership company

At least 2 members in accordance with the clause 116 of the Commercial Law.

Is it mandatory to possess articles of association and articles of partnership

It is obligatory to have articles of partnership, however, optional for articles of association (Part 1 & 2 article C clause 4 of bylaw with respect to clause 199, 197 and 196 of the Commercial Law)

Is it possible for partners of a general partnership company to transfer his/ her own partner’s share to another

No, except with all partners’ consent.

In case a person enters as the general partner, shall he be liable for the former debts?

Yes, since he/she entered the company knowing about the debts (in accordance with clause 120 of the Commercial Law).

Is it possible to issue securities at a general partnership company

It has not been predicted.

What are the pillars of a general partnership company

Minimum number of one or more managers from inside or outside

Who is responsible for the assessment of non-cash contributions at a general partnership company

They shall be assessed by partners on their liabilities (clause 122 of the Commercial Law).

Is it possible to choose the manger outside of a general partnership company

Yes (clause 120 of the Commercial Law).

Is it possible to deposit qualification shares at a general partnership company

It has not been predicted.

Is it possible for managers to make a transaction with the company

Yes, there shall be no limit and prohibition.

Is it possible to dissolve the company in case one of the partners dies or becomes incapable

Yes, it is one of the company's dissolution requirements.

Is it possible to dissolve the company by using one of the partner’s rights to terminate

Yes, in accordance with the article D clause 136 & 1371 of the Commercial Law

How are the profits and losses being split at a general partnership company

They shall be split based on the partnership share in accordance with clause 119 of the Commercial Law.