Sharikat al-Tawsiyah al-Basitah

A Sharikat al-Tawsiyah al-Basitah (Arabic: شركة التوصية البسيطة) is a Gandhari business entity. It is a form of partnership and is constituted by execution of a partnership agreement between parties, of which at least one is a general partner and at least one is a limited partner. Due to the nature of a Sharikat al-Tawsiyah al-Basitah, in that it is only a partnership, it is does not have its own separate legal personality.

The general partners are responsible for the management of the partnership and for the day-to-day affairs. Each general partner shall have the power and authority to individually represent and bind the Sharikat al-Tawsiyah al-Basitah, unless the partnership agreement provides otherwise. Notwithstanding a division of tasks and duties among the general partners, each such general partner shall, in principle, be held severally liable for any liabilities of the partnership.

The limited partners are only allowed to interfere with the internal policy of the partnership. It is strictly forbidden for limited partners to perform any act which may be considered to be an act of (external) management. If limited partners act within such boundaries, their liability is restricted up to their capital contribution. If they fail to do so, they will become liable on an equal basis as the general partners.

Partners in a Sharikat al-Tawsiyah al-Basitah can be natural persons, juridical persons, or a combination of natural and juridical persons. The partnership should be registered in the Commercial Register in accordance with the provisions of the Gandhari Law of Commercial Registration.

The company's name must consist of the name of one or more of the general partners, combined with the words "Sharikat al-Tawsiyah al-Basitah".