Simple partnership: A quick and easy solution

A simple partnership is the most basic form of a partnership. It involves a contract under which two or more persons agree to unite their efforts or their resources to achieve a common goal (Art. 530551, Swiss Code of Obligations). 

In general, simple partnerships are only created for a short period; an example might be a construction consortium that is dissolved once the building project is finished.

From the outside, a simple partnership looks like an economic interest collective. It has no legal personality, therefore, and cannot be represented under a company name. Thus, it often happens that, in practice, a company is formed without its participants even realizing it.

In terms of liability, this type of company is not without its pitfalls: seen from the outside, the partners are liable, jointly and severally and without limit, for the obligations of the whole company.  There is only limited liability when a partner acts clearly in their own name.

The creation of a simple partnership does not require any specific formalities. It is not possible to register the partnership on the trade register. It is recommended that a contract be drawn up to govern the management of the partnership, the division of labor and areas of expertise, contributions, and distribution of earnings and losses among other things.



Comparison of legal forms (2023) (PDF, 178 kB, 21.03.2023)SME Portal - State Secretariat for Economic Affairs (SECO)

Last modification 17.01.2023

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