A General Partnership is a popular form of business configuration in Indonesia that necessitates at least two, but no more than twenty partners. Should a business venture exceed 20 partners, it would be obligated to incorporate as a corporation.
In this model, the partners do not enjoy the luxury of limited liability owing to the inability to establish a separate legal entity. Consequently, each partner would face personal income tax on their share of earnings. A General Partnership is a viable alternative to sole-proprietorships and corporations.
Remarkably, each partner assumes full accountability for the firm’s liabilities, and this responsibility bears no limits. This extends to the accountability for losses and debts caused by their co-partners.
General Partnerships parallel sole proprietorships with respect to unlimited liability, with each partner held liable for the actions of the others. This structure should be chosen only when no other viable routes remain.
At the heart of a General Partnership lies consensus; any significant decisions that influence how the enterprise operates require agreement. The partnership agreement should clearly outline the conditions and process for a partner to circumvent consensus, ensuring clarity and understanding.
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To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional
Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
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A General Partnership is a popular form of business configuration in Indonesia that necessitates at least two, but no more than twenty partners. Should a business venture exceed 20 partners, it would be obligated to incorporate as a corporation.