There are several different forms of partnerships. Each such form has distinctive characteristics and features, from which the pluses and minuses of such ways of organizing a business follow. In order to better understand this issue of what partnership is, the first thing to do is to understand the very definition of partnership and its types.
Partnership Definition
In simple words, a partnership is a specific form of business ownership characterized by the presence of two or more founders. That is, each founder takes part in the total capital of the enterprise. This share is determined by the size of the contribution to the authorized capital. And the amount of liability for the obligations of the enterprise is already determined by the type of partnership.
To understand what a partnership is, the very definitions of its various types, which can function on the territory of the Russian Federation in accordance with the law, will help.
The first type is full partnership
In full partnership, all partners take upon themselves the responsibility for the company with all their means. Moreover, if a new founder has appeared, then he will be responsible not only for the new obligations of the enterprise, but also for those that were before its entry.
Management decisions in this type of partnership are taken at the general meetings of the founders either by unanimous decision or taking into account the majority of votes.
Each participant can represent the company and make decisions, unless it is determined by the memorandum of association that all founders conduct business together. If this is indicated, the decision should be made by agreement of all partners. The legislation established that the founders can be either organizations that operate on a commercial basis, or individual entrepreneurs.
What is a limited partnership, and why is this type of organization the most popular?
This partnership of owners is characterized by the fact that each founder is liable only according to his share of participation in the business. The size of the shares is determined by the constituent documents. All other property is considered personal and inviolable for each of the partners. And it is very tempting for modern businessmen.
To date, this form of legal organization is the most common in the Russian Federation. Perhaps this is due to the fact that most participants do not want to be fully responsible for the obligations of the enterprise, but only want to be liable to the extent of their share.
With this form of organization, the founder can be only one for the whole partnership. At the same time, there are restrictions on the maximum number of participants - no more than 50. The legislation of the Russian Federation establishes the minimum authorized capital of a limited liability partnership in the amount of ten thousand rubles.
Decisions are made at meetings of the founders of such a partnership. And the revision committee (supervisory board) controls their work.
Mixed partnership - all the best in one form
In mixed partnerships, all founders are divided into internal members and external members who are simply contributors. Complementaries (internal members) are liable for obligations in the full volume of their property, that is, by all their means. Moreover, external investors (limited partners) - only within the limits of their contributions. The essence of the partnership of this form of organization is to combine some of the distinguishing features of the previous two types.
The decisions in such a partnership are usually taken by compliments. They manage all the activities of the enterprise. They determine what the partnership will be and the vectors of its development. Commandists are simply investors who do not make managerial decisions.
A mixed partnership may issue shares in the amount of contributions of limited partners. Such a partnership will be called a joint stock company.
In the end, after studying the information about what a partnership is, what are its forms, you can understand what kind of partnership is needed for specific purposes, because each of them is good in its own way.