A partnership arises where two or more people jointly carry on business, intending to make a profit. The partners own the partnership assets jointly. Most partnerships in New Zealand are general partnerships. You do not need to register a partnership under any statute.  All that you need to do to form one, is a written, oral, or implied agreement between the partners.

The main advantage of partnerships is their simplicity.  The partnership holds and derives income from the partnership assets and each partner shares in those assets and income.  However each partner is jointly and severally personally liable for the partnership liabilities.  If the partnership dissolves or sells assets, there are a number of tax consequences including depreciation recoveries.  Some of these drawbacks may be alleviated by a partnership of companies.