The civil-law partnership, also known as BGB partnership or German "GbR" for short, is practically the basic model of partnerships in Germany. BGB partnerships are used in all kinds of constellations in business life. The manifestations range from the classic law firm, medical practices, building owners' associations, consortiums, real estate companies, and residential communities to private individuals who join together to jointly pursue a specific purpose.
The GbR can be established unproblematically - even verbally - and does not require entry in a register. In practice, however, complex problems arise, which are not only caused by the unlimited personal liability of each partner for the liabilities of the German GbR, but also by questions of management and representation, the entry and exit of partners, the passing of resolutions, the payment of contributions and finally the distribution of profits. The succession to a GbR shareholding is also of particular practical relevance for both the co-partners and the heirs. In all these areas, the statutory regulations under German law are not tailored to the necessities of today's business life and cooperation in a company, which is why it is urgently recommended - if you want to use a GbR - to include detailed regulations on the respective topics in the partnership agreement.