What is a limited partnership (CV - Commanditaire Vennootschap)?
A limited partnership (CV) is a special form of the partnership under common firm (VOF).
There are two sorts of partners:
- active partners
- limited or sleeping partners.
The active partner is active as an entrepreneur. The sleeping partner stays in the background and tends to finance the business. He has much less authority and bears less risk. He is not allowed to act as active partner and his name cannot be used in the name of the partnership.
A limited partnership tends to develop from a sole trader or general partnership when a sleeping partner enters the business to provide extra finance for growth.
A partnership agreement is not compulsory, but is in fact essential. The agreement states the length of the limited partnership, the contribution, authority, profit share and the arrangements for resignation of the two sorts of partners. You can either ask a civil notary to draw up the contract or do it yourself using a model contract.