Professional partnership is anunusual type of partnership as it can be established only by the representatives of liberal professions, so – by natural persons allowed to work as: lawyers, apothecaries, designers, construction engineers, auditors, insurance brokers, tax advisors, stock brokers, investment advisors, accountants, doctors, dentists, vets, notaries, nurses, midwives, legal advisors, patent agents, appraisers, and certified translators. A given partnership may be created by individuals performing various types of liberal professions, but there may be specific requirements set forth by auxiliary acts. The agreement of incorporation should be made in writing to be considered valid. A professional partnership is created after its entering into registers.
In the case of professional partnership, relations and liabilities are also governed in a different manner. Partners are not responsible for actions performer by other partners acting on behalf of the partnership, as well by the acts of negligence committed by employed individuals reporting to the management or another partner. The documents of incorporation may, however, state that one or more partners have agreed to be liable for partnership’s actions to the same extent as associates of general partnerships. Each partner has the right to represent the company on his or her own, unless the concluded agreement states otherwise. Company’s agreement may also state that representation and supervision-related undertakings are to be performed by the management.
If a given partner is deprived of the right to perform a liberal progression, he or she should resign from his or her participation in the partnership up to the end of the calendar year in which he or she was deprived of said right. What is more, due to the fact that the possibility of being a partner in such partnership has been granted basing on certain qualifications, inheritors of deceased partners are typically not accepted as partners. A different statement can be included in the documents of incorporation. However, then the inheritor has to be allowed to perform a liberal profession as well.
To sum up, a professional partnership grants the possibility of combining ideas and capital of several individuals to create a powerful company generating remarkable income while at the same time limiting the liability of individual associates.