A general partnership can be set up quickly and easily. It is a good form of company to be able to run your own business quickly. In this blog post we explain how to set up an OG.
Articles of association
To establish an OG, a partnership agreement must be concluded between at least two parties. However, it is not It is not necessary that this partnership agreement is also recorded in writing. Accordingly, no contract needs to be signed with a notary.
However, in order to avoid disputes later on, it is advisable to draw up a partnership agreement in writing when setting up an OG. The articles of association should regulate, for example, how profits or losses are to be distributed, who is to manage the business of the OG or with which majorities important decisions must be made. The partner notaries of notarity will be happy to advise on the drafting of articles of association and will also write them if necessary.
Notary at the OG Foundations
It is not necessary to sign a partnership agreement to establish an OG. Nevertheless, the involvement of a notary is mandatory for the formation of an OG. Two documents must be notarised:
- Sample company signature: This is a sample signature of all shareholders. This is deposited with the companies register. If documents are signed in the name of the OG, the signature can be compared with the one filed with the commercial register.
- Registration in the commercial register: The OG only comes into existence with the entry in the commercial register. The application to the commercial register must be certified by a notary. (§106 UGB)
The Signature Notarization These documents can be submitted online via notarity. This is a quick and easy way to set up an OG. Experience shows that the price for founding an OG starts at EUR 300 (incl. VAT).
*Non-binding estimate of notarity, taking into account the upper limit according to the notary tariff; the price is agreed between the notary and the client.
Business account with OG Gründen
A separate business account for the OG is not absolutely necessary. However, it is advisable to collect the turnover generated with the OG in a separate account. A business account for the OG can also be opened online at almost any online bank.
Disadvantages of an OG
The biggest disadvantage of an OG is certainly that the partners have unlimited liability for the OG's debts with their private assets. If you don't want this, we recommend that you set up a GmbH (limited liability company). This can also be done online via the service of notarity - more info here. Compared to the GmbH, however, the OG is characterised in particular by the fact that it is significantly cheaper in terms of administrative expenses. The OG can also be advantageous from a tax point of view.
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