Finance and Distribution of Assets

Initial capital is not required when founding a general partnership, as the partners’ work input will suffice. In limited partnerships the silent partner shall invest initial capital in the company. There are no limits for the minimum input. Therefore the initial capital can be only one euro, for example.

The partners may collect a salary or a dividend from the partnership in accordance with the agreement. The partners’ share in the profits is agreed in the partnership agreement and each partner is taxed according to his share in income taxation.

In limited partnerships interest will be paid first from the profit to the silent partners according to the partnership agreement for the capital invested in the company by the silent partner. Only after that it is possible to divide rest of the profit to the general partners according to the partnership agreement.