Publication date: 11.06.2024
Full business partnership in Ukraine
A business partnership is an organizational and legal form of entrepreneurial activity that involves the pooling of capital, material resources, knowledge and management skills of its members to achieve a common goal and make a profit. The advantages of this form of activity are the possibility of attracting a significant material, technical and financial base, which is important for successful business. The members of business associations invest both money and equipment, knowledge and their management skills in the authorized capital of the enterprise.
There are several types of business associations, including:
• Full partnership
• Limited partnership
• Limited liability company (LLC)
• Company with additional liability (TDV)
• Joint-stock company (JSC)
This article will take a closer look at the full partnership.
1. Full partnership
A general partnership is a type of business partnership in which all participants are engaged in joint business activities and are jointly and severally liable for the partnership's obligations with all their property. This means that each participant is responsible for the company's debts not only within the limits of his contribution, but also with all his personal property.
2. Founding documents of the general partnership
The main founding document of a general partnership is the founding agreement.This document is created by all members of the company and contains information about the rights and obligations of members, the procedure for managing the company, the distribution of profits and losses, as well as the terms of liability of members, the size and composition of the joint capital of the company, the amount and procedure for changing the shares of all members in the united capital. The founding agreement must be signed by all participants and meet the requirements of Ukrainian legislation.
3. Management of a general partnership
A general partnership is managed jointly by all participants, unless otherwise provided for in the founding agreement. Each participant has the right to participate in the management of the company's affairs and represent its interests. The founding agreement may provide for the appointment of individual participants to management positions or the delegation of management functions.
4. Distribution of profit and loss of a general partnership
The profit of the general partnership is distributed among the participants in proportion to their contributions to the authorized capital, unless otherwise provided by the founding agreement. Damages are also distributed in proportion to contributions, unless otherwise stipulated by the contract. Participants can agree on a different procedure for the distribution of profits and losses in the founding agreement.
5. Liability of members of a general partnership for its obligations
Members of a general partnership are jointly and severally liable for the obligations of the partnership with all their property. This means that in the event that the company's assets are insufficient to repay debts, creditors can foreclose on the personal property of any of the participants.
6.Changes in the members of the general partnership
Changes in the composition of members of a general partnership may occur for various reasons, such as the withdrawal of a member from the partnership, the transfer of his share to another member or a third person, as well as in the event of the death of a member. All changes must be properly executed and registered in accordance with the law.
7. Liquidation of a general partnership
The liquidation of a general partnership may take place by the decision of the participants, by a court decision or in cases provided by law. The liquidation procedure includes the fulfillment of all the company's obligations to creditors, the distribution of residual property among participants, and the entry of relevant entries into the state register.
Conclusion
A general partnership is one of the less common forms of business partnerships in Ukraine, but it can be effective for businesses that require a high level of trust between participants and readiness for joint liability. Such companies are often created in the fields of professional services, consulting and other types of activities where the participation of all participants in the management and conduct of affairs is important.
Offer from the legal service "Consultant"
Legal service "Consultant" offers professional legal services for entrepreneurs planning to create a full company. Our services include:
• Consultation of a lawyer and lawyer: Get competent advice on the choice of organizational and legal form and preparation of constituent documents.
• Analysis of documents and legal analysis of the situation: Our lawyers will check all necessary documents and provide recommendations.
• Written consultation: We will prepare written conclusions on the compliance of your activity with the law.
• Verification of documents by a lawyer: We will ensure proper preparation and registration of founding documents.
• Lawyer help online and lawyer online: Get advice and support online.
Contact the legal service "Consultant" for professional assistance in creating and registering a general partnership in Ukraine. We will provide you with reliable support at every stage.
We are always ready to help you in running a successful business!
