|
ARBITRATION LAW
CORPORATION LAW
MEDIATION LAW
PARTNERSHIP LAW |
|
|
SUMMARY OF PARTNERSHIP LAW
PURPOSE
The Partnership Law (“Law”) establishes consistent,
transparent procedures (conforming to international
best practice) applicable to both Afghan and foreign
partnerships alike. This Law permits individuals
associating together in a partnership (in contrast
to becoming a corporation) the legal means for
establishing and maintaining business partnership(s)
in Afghanistan. The Partnership Law provides
minimally intrusive, nationally applicable
requirements for establishing, governing and
terminating Afghanistan partnerships. The Law’s
purposes include providing partners transparency
regarding the partnership’s finances and notice to
third parties of the its legal structure and current
operation so they can better assess the risks of
doing business with the partnership.
Together with the modern Corporation Law, both of
which were signed by the President on January 25,
2007, this Law provides Afghanistan with the legal
rules for the organization of business enterprises
in this Country. Enactment of these two
international best practices Laws will help set the
stage for attracting foreign direct investment and
inward domestic investment to Afghanistan.
KEY PROVISIONS
Probably the most important point in a partnership
(in contrast to a corporation) is that there is no
limit of liability for general partners. In other
words, if the partnership cannot timely meet its
financial obligations the general partner(s) is
responsible for paying off the partnership’s
creditors. (Partners can limit their liability to a
fixed amount if they enter into a Special
Partnership as described in the Law.)
Generally speaking, partnerships are utilized by
smaller businesses, particularly family enterprises,
whereas corporations (with their more detailed legal
requirements) are often established by owners less
familiar with each other.
The Partnership Law is subdivided into discrete
subject matter areas. Parts 1-3 set forth general
rules and definitions for partnerships, while Parts
4-6 specify particular requirements for each of the
three types of partnership---general, special, and
work, respectively.
IMPLEMENTATION
The Commerce Ministry is responsible for
implementing this Law after its Effective Date. The
Government should decide certain major issues before
that Date, including the identity of the “Central
Registry”, the Effective Date and whether any fees
will be permitted to be charged under the Law for
required Government services.
CONCLUSION
By enacting this Law (together with the Corporation
Law) the Government will take a major step towards
bringing Afghanistan’s commercial laws to
international standard. These laws will also provide
the legal basis for modernizing most of the rest of
the business laws and help attract sorely needed
foreign direct investment to this Country.
|
|
 |
