Partnership
Quick Answer
What is Partnership?
A partnership is two or more people trading together under an agreement – not a separate legal entity in South African law.
Partnership explained
Each partner is personally liable for partnership debts, and each is taxed personally on their share of profit. A written partnership agreement is essential.
Who it applies to: Small professional and family businesses.
Cost: Free to form; get the agreement drafted properly.
Related terms and guides
Official source: Gov.za
Always verify this information with official South African government sources. Rules, fees and thresholds change. Check SARS, CIPC, the Department of Employment and Labour or gov.za before you act.
About BizAnswers: BizAnswers is a privately owned South African company – not a government department. Our guides are free to read and show you how to do things yourself through official channels. If you would rather have the paperwork handled for you, we assist individuals and businesses with filing their South African tax returns and staying compliant, which is a paid service, not a free government service. Contact us for help.
Last reviewed: September 2026 by the BizAnswers editorial team. How we write and check our guides.