PARTNERSHIP
The two categories of partnership:
• General partnership (Société en Nom Collectif – SNC)
• Partnership in commendam (Société en Commandite Simple – SCS).
a-Partnership
Partnerships are formed between two or more people.
The main characteristic of this form is the personal contribution of each partner since all the partners are personally liable for the company’s debts and obligations.No required capital is requested by law.
It must be registered at the commercial register since it is doing a commercial activity.
The company name includes the names of some or all of the partners and is usually followed by the words ‘and Co.’
A partnership in commendam is a limited partnership with two types of partners.
General partners who own and manage the business. These are liable for all their obligations.
Limited – or silent – partners are financial contributors and do not participate in the management. Their liability is limited to their contribution.
b-Co-Partnership (Société en Participation)
A co-partnership is a partnership known only to the parties concerned in order to achieve a certain project and, since it is secret, cannot be registered. An association agreement sets down the partners’ rights and obligations, as well as their participation in profits and losses. Each party is responsible for its own liabilities.
Despite their secrecy, the agreements inherent in co-partnership are enforceable at law in cases of dispute