General Partnership: Who Qualifies and What You Get
Learn about the General Partnership structure in the Netherlands, including how it works and the significant liability risks for partners.
A General Partnership is a simple business structure used when two or more people decide to run a business together.
Who it's for
This structure is for businesses run by two or more partners working together.
What you get
Setting up this type of partnership is straightforward and does not require you to provide a minimum amount of starting capital.
What it costs you
The main cost is the legal responsibility you take on. All partners are held jointly and severally liable, meaning you can be held personally responsible for the full amount of the business's debts or obligations.
The catch to know
The risk to your personal assets is quite high. Because of the liability rules, the financial risk is much more significant than it would be if you chose a different legal entity like a BV.
How to apply
- Decide on your partnership agreement with your partners.
- Register your business with the official chamber of commerce.
- Check the official portal for current registration requirements.