Partnership

This term refers to the law of the country selected below.

  Czech Republic

What is a partnership?

The Business Corporations Act regulates two types of personal companies in the Czech Republic.

General Partnership (v. o. s.): It must have at least two partners who are liable for the partnership’s obligations without limitation, jointly and severally. Share capital is not mandatory; the partners may determine its amount in the memorandum of association. The partners are personally involved in the management of the company.

Limited partnership (k. s.): This is a mixed type of company, as at least one partner is liable for the company’s debts to a limited extent, up to the amount of its capital contribution or up to the amount specified in the memorandum of association (limited partner), whilst at least one partner has unlimited liability (general partner). Only limited partners are obliged to make a capital contribution. The statutory body of the company consists of all general partners, unless the partnership agreement specifies that only some of them constitute the statutory body.

A partnership may be established for the purpose of conducting business or for the purpose of managing its own assets.

When can a partnership be dissolved?

A partnership may be dissolved, in particular, by agreement of the partners, upon the death of a partner (unless the memorandum of association provides otherwise), by the withdrawal of a partner with unlimited liability, as a result of a declaration of bankruptcy, the approval of debt relief or enforcement proceedings against the share of a partner with unlimited liability, by a court order, by the expulsion of a partner, or for other reasons.