If a company turns a profit, its partners are entitled to receive a share of said profit, which is calculated based on their contribution.
In profit-seeking companies, partners are entitled to a share of the profit earned.
The share of profits can only be deducted from the balance sheet profit and from the reserves set up for this purpose. Partners are entitled to profit-sharing in proportion to their contribution of equity.
However, interest on the share capital cannot be paid as this amount is considered investment capital.
