General partnership

A type of undertaking (under Dutch) law between two or more persons (partners). The partners agree to bring either capital or labour into the partnership for the benefit of the business. A general partnership does not possess legal personality and does not have separate capital. The partners are jointly and severally liable for the debts of the general partnership.

The sole requirement for incorporation is the registration at a Dutch Chamber of Commerce. As this way of cooperation is simple to set up, it is used often in smaller businesses where more then one partner is involved. When the business grows, the general partnership can be converted into a private limited partnership A business entity which consists of one or more general partners and one or more limited partners.
» Meer over limited partnership limited partnership. This way the capital from the business is separated and the partners enjoy limited liability.