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Business Owners & Independent Contractors

Other legal forms of business

A partnership (sf) is a company where there are two or more owners. Other corporate legal forms are, for instance, co-operative societies, self-governing institutions and limited partnership companies.


The owners of a partnership are jointly and severally liable for all debts of the partnership. The liability is direct, undivided and unlimited.

It is important that the owners draw up a precise and detailed memorandum of association at the outset of business operations, because the liability rests with every single owner.

Partnerships must be registered with the district magistrate for the relevant district. The partnership must have a State Registration Number, which will be allocated by the Directorate of Internal Revenue against a company registration certificate from the district magistrate.

A partnership that accounts for a payroll must be registered on the relevant regional tax director's list of employers.

There are two income tax brackets concerning partnerships, and taxation is contingent upon whether the company is registered as an independent tax entity or not. If not, then individual members are taxed according to their share of the company.

Co-operative societies are, as the name indicates, established on the basis of co-operation, and they are intended to promote the interests of the members with respect to their commercial participation in the society. The number of members is not fixed and the members are not personally liable for the overall obligations.

A co-operative society must be registered in the enterprise register.

A self-governing corporate entity is owned by itself. A self-governing corporate entity is established with a specific contribution of initial capital, and a special board manages the company's interests. Neither the founders nor the board are liable for the corporate obligations.

A self-governing corporate entity that is engaged in business activities must be registered on the Directorate of Internal Revenue's list of self-governing corporate entities.

A limited partnership company is a combination of a partnership and a limited company. At least one party has unlimited liability with respect to the company's obligations. Others have limited liability, which is based on a particular amount or ratio.

Laws and regulations