BUSINESS & COMPANY FORMATIONS

Partnership Business Name Registration

How to Register a Partnership Business Name in Ireland 

Setting up a Partnership Business

A Partnership is a type of business entity in which two or more individual persons come together to engage in the carrying out of a trade or business in which the partners share with each other the profits or losses of the business undertaking in which they have all invested. A Partnership Business Name must be registered where the partners are carrying on a business.

Register a Partnership Business Name!

General partners have an obligation of strict liability to third parties injured by the Partnership. General partners may have joint liability or joint and several liability depending upon circumstances.

Limited partners are required to contribute a stated sum as capital or property and may not be liable for all of the debts and obligations of the Partnership but cannot take part in the management of the business. 

The business of banking cannot be carried on as a Partnership if the number of partners exceeds 10 or more. The entity must then be registered as a company.

PARTNERSHIP

A Partnership is identified by a number of clearly identifiable characteristics and legal requirements and:  

(a) is legally obliged under the Registration of Business Names Act to register a business name as a Partnership

PARTNERSHIP - ADVANTAGES

Registering a Partnership Business Name and running a business as a Partnership has fewer legal formalities and compliance requirements compared to other structures such as limited companies for example. The main advantages of being a Partnership are:

Decisions are made by the partnership owners.

Business Expenses which are incurred in running the business are allowable deductions against profits.

All profits are kept by the Partnership owner - there is no disbursement

A Partnership is not required to file an annual return and accounts each year on the public file as in the case of a limited company. This should not be confused, however with the Partnerships obligation to file a tax return each year.

PARTNERSHIP - DISADVANTAGES

Running a business as a Partnership means that the business owner is fully liable for all debts of the company at all times and also on business cessation should there be debts outstanding. The benefit of limited liability, as in the case of owners of a limited company does not apply - see Why incorporate

The partners in the structure will be operating without the benefit of limited liability thereby assuming full and total personal liability and responsibility for any an all outstanding debts, charges, fines and or litigation matters that the partnership may incur from time to time and or at the time of business closure.

It is often more difficult for Partnership business to attract investment and raise finance from institutions. Where Finance, Grants etc are obtained there may be a requirement for a limited company.

 

PARTNERSHIP OBLIGATIONS

There are a number of requirements and obligations which a Partnership must comply with: 

(a) A Partnership is legally obliged under the Registration of Business Names Act to register the business name under which he/she is trading if such trading name is not carried on under his/her own name

(b) is legally obliged to register as a Partnership for central tax purposes with the Revenue Commissioners

(c) is obligated to maintain proper bookkeeping and accounts records.

(d) must register for VAT where annual sales turnover exceeds €37,500 in the case of the supply of services and €75,000 in the case of a Partnership supplying goods.

(e) register as an employer if employees are hired and operate a payroll for such employees.

(f) A Partnership will be operating their business concern with full and total personal liability and responsibility for any an all outstanding debts, charges, fines and or litigation matters that the business may incur from time to time and or at the time of business closure.

(g) It is generally considered prudent and is normal to have a Partnership agreement drafted between the parties to the partnership setting out each partners responsibilities, duties, profit divisions etc.