Partnership (Gesellschaft bürgerlichen Rechts)

Tthe partners of a German partnership (Gesellschaft bürgerlichen Rechts, GbR) mutually put themselves under a duty to promote the achievement of a common purpose (e.g. renting out a property) in the manner stipulated by the partnership agreement. See § 705 BGB. The partners are jointly liable with their private assets for obligations incurred by the partnership. Generally, a German partnership does not have to be registered in the commercial register (Handelsregister). However, if the annual turnover, capital resources and total number of employees exceeds certain thresholds or if it uses commercial accounting, the company is deemed to be a general commercial partnership (Offene Handelsgesellschaft, oHG).  and must be entered in the commercial register (Handelsregister). Upon the death of a partner the partnership ends unless it was agreed in the partnership agreement that the remaining partner continue to promote the achievement of the common purpose or another person (e.g. the heir) steps in for the decedent.


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Glossary

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