Partnership

A partnership may be constituted via a written deed which would constitute the agreement between all the partners. Under Maltese law, a commercial partnership may be either a partnership en nom collectif or a partnership en commandite. A partnership en nom collectif has its obligations guaranteed by the unlimited and joint and several liability of all the partners. On the other hand, a partnership en commandite, is known as a limited partnership in that its obligations are guaranteed by the unlimited and joint and several liability of one or more general partners, while the liability of the limited partners of this type of partnership is limited to the amount, if any, unpaid on the contribution. Such partnerships must draw up yearly accounting records but are not subject to audit. Furthermore, the dissolution of such partnerships need not necessarily follow the same procedure as that applicable to limited liability companies. In fact, the dissolution procedure may be regulated by the deed of partnership itself.

Following recent amendments to the Companies Act (Chapter 386 of the Laws of Malta), the partners in a partnership en nom collectif and the general partners in en commandite may be entities having limited liability. If all the partners in an en nom collectif or all the partners in an en commandite are entities enjoying limited liability, the partnership must notify the Registrar of Companies of such an occurrence and such a partnership shall be subject to the obligation of drawing up accounts and auditing, similar to a limited liability company. Upon dissolution, such partnerships, must appoint a liquidator, and the procedure of dissolution and winding up follows that applicable to limited liability companies.

Further information may be obtained from one of our leading experts by contacting us below:

Your Name (required)

Your Email (required)

Subject

Your Message

To help us fight spam, please enter the verification code below:
captcha