The general partnership is a type of commercial company.
Society is a term whose etymological origin is found in the Latin word sociĕtas . Typically, the concept refers to the group of individuals who live in the same territory under common rules, although the dictionary of the Royal Spanish Academy ( RAE ) recognizes other meanings.
In the field of commerce , a company is a legally constituted group that, thanks to the contributions of its members, has initial capital. There are various types of companies that involve different legal forms of companies or companies.
The adjective collective , meanwhile, refers to that linked to a group of people or elements. Its etymology leads us to the Latin collectīvus .
What is a general partnership
A general partnership is a type of commercial company : that is, a company whose purpose is the development of a commercial activity. In this case, all partners assume the commitment to participate in the same rights and obligations in an agreed proportion .
In a collective partnership, the partners act under a certain corporate name and are jointly, personally and subsidiary liable for debts that are not covered by the share capital. It should be noted that the liability is unlimited .
This unlimited liability is the main characteristic of the general partnership, since in the limited liability company ( SRL ) and the public limited company ( SA ) exactly the opposite occurs. The partners of a general partnership have to resort to their own assets to respond for payment when the capital of the partnership is not sufficient to meet the debts; that does not happen in the SRL or the SA
In a general partnership, liability is unlimited.
Your story
It is usually indicated that the general partnership is a derivation of the first commercial companies. That is why its great antiquity stands out.
It is considered that merchant societies , developed during the Middle Ages , were the initial mercantile societies. The collective societies then took its principles to define their structure.
However, over time it was sought to establish certain limitations on the responsibility that the partners had to face. Thus other types of associations gained strength, with which the collective society remained in the background in the commercial field.
Operation of a general partnership
In the general partnership, the obligations and rights of the partners are defined according to their contributions. Based on what has been agreed, the results are shared jointly and jointly, while the losses must be assumed by the partners with their assets.
Given these characteristics, general partnerships are usually alliances of few partners that have a small share capital . Generally, these are partners with the same profession and a similar business vision.
The main advantage of the general partnership is that its structure facilitates management and contributes to decision-making. Obligations and profits , in turn, are shared jointly and equitably.
Architecture firms and law firms are organizations that usually take the form of a general partnership, generally considering the affinity between its members .