Swedish Business Law Term
Handelsbolag Understanding the Swedish General Partnership
An essential term for legal professionals reviewing Swedish contracts, focused on the critical implications of partner liability.
When reviewing Swedish contracts or advising on Nordic partnerships, you'll encounter the term handelsbolag (HB). A handelsbolag is a general partnership structure in Sweden that carries significant liability implications for all partners: they face unlimited, joint, and several personal liability for the company's obligations.
Definition of a Handelsbolag
A handelsbolag (HB) is a formal business partnership structure under Swedish law. A handelsbolag requires a minimum of two partners who agree to conduct business activities together.
Partner Liability Implications
Partners in a handelsbolag incur joint and several personal liability. This means each partner is fully responsible for all the partnership's debts and obligations. Creditors can seek repayment from any individual partner's personal assets, regardless of their ownership stake or internal agreements.