Establishing a Professional Partnership (Partnerschaftsgesellschaft) in Germany

German law provides a specific form of partnership for members of the liberal professions: the Partnerschaftsgesellschaft, usually abbreviated as PartG.

Unlike an ordinary commercial partnership, the PartG is specifically designed for individuals who jointly practise a liberal profession. German law defines this category broadly and expressly refers, among others, to lawyers, tax advisers, auditors, doctors, engineers, architects, journalists, translators and various scientific and artistic professions. Only natural persons may be partners in a PartG.

How does a Partnerschaftsgesellschaft work?

The partnership provides an organisational framework in which several professionals can practise together while retaining the personal and independent character associated with their professions. Depending on the profession concerned, additional professional regulations may apply.

A particularly important question when choosing this structure is liability. The German Partnership Companies Act contains specific provisions on liability for obligations of the partnership. German law also recognises the Partnerschaftsgesellschaft mit beschränkter Berufshaftung (PartG mbB), for which additional requirements, including requirements concerning professional liability insurance, apply.

How is a Partnerschaftsgesellschaft established?

The partners first need to determine how their joint professional practice will be organised. This includes matters such as their respective contributions and responsibilities, management and representation, distribution of profits and losses and arrangements for partners joining or leaving the partnership.

The PartG is entered in the Partnerschaftsregister. The registration must identify the liberal profession exercised by each partner. Specific registration requirements apply to a PartG mbB, including the submission of the insurance certificate required by law.

The name must contain the designation “Partnerschaft” or “und Partner”.

Before establishing the partnership, the professional rules governing the particular professions involved should also be considered, as German law expressly allows profession-specific legislation to impose additional conditions.

How we can assist

We advise professionals on selecting and establishing the appropriate partnership structure in Germany.

We can assist with the partnership agreement, governance and representation arrangements and the registration of the PartG. Where a PartG mbB is contemplated, we can also advise on the additional legal requirements associated with that structure.

For international professional practices, we can assess how a German PartG fits into an existing cross-border organisation and coordinate the German aspects with advisers and entities in other jurisdictions.