Investment Partnerships in Economic Activities: Theory and Applications

Abstract

The study discusses the theoretical features and practice of applying the new legal form, namely the investment partnership, as a model for conducting joint activities for small businesses. The design of an investment partnership agreement is a special kind of simple partnership agreement. It was put into legal circulation as a tool for combining the means and efforts of business entities to carry out joint activities with minimal obstacles from Russian legislation. Key benefits of the new form include the following: carrying out activities without the formation of a legal entity, the flexibility of regulating the relations of investment partners and managing partners, taxation “transparency,” excluding a double tax burden, and a limited liability of investment partners in relation to the partnership’s common property. An analysis of the spread of the new legal institution among the sectors of the economy indicates a low degree of popularization and a long period of adaptation of investment partnerships. With regard to the agricultural industry, the form of activity within the framework of an investment partnership can only be considered as one of the tools in solving the resource support of economic activity, which does not preclude joint activities under a simple partnership agreement or the organization of cooperative associations. As a result of the study, the weaknesses of the investment partnership agreement are formulated. The author proposes to adapt a new form of joint activity to the conditions of agricultural production was introduced.