The advantages offered to partnerships are similar to those of autonomous workers. These advantages include the simplicity in a partnership’s creation and management, including its dissolution; the minimum costs of processing its acts; and the lack of a minimum share capital requirement.
The initial activities to set up a partnership allow saving costs and accelerating the beginning of the initial activities. This is due to the following reasons:
- Partnerships have a much simpler and cheaper formal establishment than companies (they can form through a private document). A public deed before a notary or its registration in the Commercial Registry is not necessary (except when the partnership has contributions in the form of property or property rights), nor is there a minimum initial capital contribution
- After the above steps, the procedure to establish the partnership is also simpler. For example, it is not mandatory to file the annual accounts of the partnership in the Commercial Registry
- A partnership is a flexible way for autonomous workers to collaborate — especially if the investment required is small
- Standardized accounting is not required. The partners are only obligated to have a registered book of delivered invoices, another of received invoices, and a third of investments; they are not obligated to make their accounts public
A partnership is a very good model to start an entrepreneurial project. At any time, the project can transform into a company. If the project does not crystallize, it can dissolve simply and inexpensively, which is not possible with projects that develop through a public or limited liability company.
This article is not considered as legal advice