General partnership (s.c)


A general partnership (sociedad civil (S.C.)) is a contract by means of which two or more people are bound to share money, goods, or industry in order to distribute earnings amongst themselves.

A general partnership’s main characteristics are:

  • It requires the participation of at least two people who will be partners.-
  • The partners are liable for their debts and obligations with their own personal equity.-
  • They have a corporate address that may or may not match one of the partner’s.-
  • They shall have a designation, adding the letters S.C.-
  • Each partner pays tax through IRPF (personal income tax) (annex economic activities based on their holding in the partnership).-
  • They do not pay tax through the Corporate Tax.-
  • Resolutions are adopted by majority based on the stake of each partner in the company.-
  • They have a set duration, agreed upon in the contract.-

The kinds of general partnership are:

  • Universal general partnership:

Universal general partnership of present goods: this is a partnership by means of which all partners share the goods that currently belong to them in order to distribute them amongst themselves, as well as all earnings that they make with them.-

Universal general partnership of all earnings: this includes all earnings made by partners through their industry or work as long as the company lasts

  • Extraordinary general partnership:

Their purpose is only for certain things, their use, or their fruits, or an indicated company, or to practise a profession or art

  • Consider
    • Progressive taxation.
    • Unlimited liability: once the company’s equity has been liquidated, if debts have not been paid, the partners are conjointly held liable with their present and future assets

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