Because partnerships entail more than one person in the decision-making process, it is important to discuss a wide variety of issues up front and develop a legal partnership agreement. This agreement should document how future business decisions will be made, including how the partners will divide profits, resolve disputes, change ownership (bring in new partners or buy out current partners) and how to dissolve the partnership. Although partnership agreements are not legally required, they are strongly recommended and it is considered extremely risky to operate without one.
General Partnerships assume that profits, liability and management duties are divided equally among partners. If you opt for an unequal distribution, the percentages assigned to each partner must be documented in the partnership agreement.
When there is more than one person involved, the partners are required to register a General Partnership. The requirements are the same as for the Sole Proprietorship (EZ).
For additional information on business license application for a General Partnership (VOF), contact the Helpdesk (582-1181 ext. 250) at the Department of Economic Affairs, Commerce and Industry.
Source: Chamber of Commerce and Industry Aruba.