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Private Partnerships


The Private Partnership consists of a managing partner accepting all the risk and one or several silent partners whose risk is limited to the capital paid in. As a managing partner often, a Ltd. is used to further limit the risk.    

One or more silent partners (as limited partners) establish a private partnership, together with a managing partner as a general partner. The silent partners have no part in the management and apart from their deposit they carry no risk. The managing partner bears the risk and conducts the business. This is usually a limited company.

The role of the managing partner is usually taken by a lawyer who is trusted by the partners. The profits of the partnership are contractually agreed so that the partners get paid according to their holdings, and the function of the managing partner is remunerated by a fixed amount.

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