What is Partnership?

A partnership in Switzerland is a business structure where two or more individuals or entities collaborate to operate a business, share profits, and bear responsibilities. Partnerships are governed by the Swiss Code of Obligations (CO) and are commonly used for small businesses, professional services, or joint ventures.

Types of Partnerships in Switzerland

Swiss law recognizes several forms of partnerships:

1. General Partnership
   In a general partnership, all partners share equal responsibility for managing the business and are personally liable for its debts. It is not a separate legal entity, meaning obligations are directly tied to the partners.
2. Limited Partnership
   A limited partnership includes general partners with unlimited liability and limited partners whose liability is restricted to their capital contribution. This structure is often chosen for businesses requiring external investors.

Key Features of a Partnership

Partnerships are relatively simple to establish and operate, requiring an agreement between partners that outlines roles, responsibilities, profit-sharing, and decision-making processes. While partnerships offer flexibility, personal liability for debts (except for limited partners in limited partnerships) is a significant consideration.

Partnerships are a practical choice for entrepreneurs and professionals seeking collaboration, shared resources, and mutual accountability. In Switzerland, this business model continues to support innovation and growth in various sectors.