Civil law association (GbR)
As soon as you have one or more partners who join with you in establishing a business, you are forming a civil law association (GbR, also known as BGB-Gesellschaft). The members of the association are each liable to the full extent of their personal fortunes for the company’s debts. You can agree to special rules in the partnership agreement (inner relationship).
The GbR or BGB-Gesellschaft is ideal for any uncomplicated form of company partnership (small traders, group practices, freelancers, consortiums).
The conclusion of a partnership agreement is possible; no specific form is required.
Advantages
Low formation expenses, no stock capital required.
Disadvantages
All of the partners of the BGB-Gesellschaft are liable to the full extent of their personal fortunes.
As soon as you have one or more partners who join with you in establishing a business, you are forming a civil law association (GbR, also known as BGB-Gesellschaft). The members of the association are each liable to the full extent of their personal fortunes for the company’s debts. You can agree to special rules in the partnership agreement (inner relationship).
The GbR or BGB-Gesellschaft is ideal for any uncomplicated form of company partnership (small traders, group practices, freelancers, consortiums).
The conclusion of a partnership agreement is possible; no specific form is required.
Advantages
Low formation expenses, no stock capital required.
Disadvantages
All of the partners of the BGB-Gesellschaft are liable to the full extent of their personal fortunes.