{"id":15939,"date":"2024-10-03T11:35:18","date_gmt":"2024-10-03T09:35:18","guid":{"rendered":"https:\/\/www.accountable.eu\/?p=15939"},"modified":"2024-10-03T11:35:19","modified_gmt":"2024-10-03T09:35:19","slug":"limited-partnership","status":"publish","type":"post","link":"https:\/\/www.accountable.eu\/en-be\/blog\/limited-partnership\/","title":{"rendered":"Starting out as self-employed: what\u2019s a limited partnership?"},"content":{"rendered":"\n

Want to become self-employed? The first thing to do is to determine which legal form best suits your situation. In Belgium, many first-time freelancers opt for the status of natural person, i.e. a sole proprietorship. But it\u2019s also possible to set up a company from the start.<\/strong><\/p>\n\n\n\n

The limited partnership, or SComm\/CommV, is one of the company forms you can choose. But what is it, and in which situations does it make sense to set one up? In this article, we share the advantages and disadvantages of this company form as well as advice on setting up your own company.<\/strong><\/p>\n\n\n\n

What is a limited partnership?<\/strong><\/h2>\n\n\n\n

A limited partnership (\u2018soci\u00e9t\u00e9 en commandite\u2019 (SComm) \/ \u2018commanditaire vennootschap\u2019 (CommV)) is a company with legal personality,<\/strong> meaning a company with its own rights and obligations.<\/strong> An Scomm\/CommV always has a minimum of two partners,<\/strong> with at least one managing partner and one passive partner.<\/strong><\/p>\n\n\n\n

A few years ago, this legal form was also called a simple limited partnership (\u2018soci\u00e9t\u00e9 en commandite simple\u2019 (SCS) \/ \u2018gewone commanditaire vennootschap\u2019 (GCV)). If you\u2019ve already heard that term, you can forget it, because it\u2019s no longer relevant!<\/p>\n\n\n\n

Managing partners and passive partners<\/strong><\/h3>\n\n\n\n

The managing partner<\/strong> of an Scomm\/CommV is, as the name suggests, the person who manages the day-to-day activities of the company. This person can be considered the director of the company.<\/strong> In addition, the managing partner is personally liable for any debts the limited partnership incurs.<\/p>\n\n\n\n

The passive partner<\/strong> of a limited partnership invests money in the business, but does not manage it. This person is often simply a financer,<\/strong> who cannot be held personally liable in the event of financial problems. In other words, they can only lose the capital they have injected into the partnership.<\/p>\n\n\n\n

How is an SComm\/CommV different to an SNC\/VOF?<\/strong><\/h2>\n\n\n\n

The limited partnership (SComm\/CommV), and the general partnership (\u2018soci\u00e9t\u00e9 en nom collectif\u2019 (SNC) \/ \u2018vennootschap onder firma\u2019 (VOF)) are two forms of partnership, which is one of the simplest and most flexible legal forms in Belgium. Unlike the SNC\/VOF, the SComm\/CommV has a passive partner.<\/strong> This partner is not personally liable for the company, whereas in the SNC\/VOF, all partners are liable.<\/p>\n\n\n\n

In addition, the partners of an SNC\/VOF have the right to play an active role in the company. They are jointly responsible for its direction and decisions. This is different in a limited partnership: the passive partners<\/strong> have no say in the management<\/strong> of the company and therefore cannot make any decisions.<\/p>\n\n\n\n

Lastly, the passive partner of an SComm\/CommV can remain anonymous<\/strong> if they wish. Conversely, in an SNC\/VOF, the names of the partners are always publicly available.<\/p>\n\n\n\n

The advantages of a limited partnership<\/strong><\/h2>\n\n\n\n

Why set up a limited partnership? Discover the advantages of a SComm\/CommV.<\/p>\n\n\n\n