Legal Q&A · Company formation in Czechia and Slovakia

Am I liable for the debts of a general partnership even after I leave it?

Law as at 12 September 2026

Short answer

Yes, for obligations that arose before your participation ended. Leaving does not end liability for old debts; it only closes off its extent: you are no longer liable for obligations arising to the partnership after your participation ends. The opposite applies on joining, since a new partner is liable also for obligations of the partnership that arose before their accession.

The partners of a general partnership are liable for its debts with all their assets, jointly and severally. If one of them decides to leave the business, they naturally ask whether their exposure disappears on departure. The Act answers by distinguishing according to the time at which the obligation arose: what arose while you were a partner follows you even after you leave.

Liability during participation in the partnership

The basis is stated tersely in the Act:

A general partnership is answerable for its obligations with all its assets. The partners are liable for the obligations of the partnership with all their assets, jointly and severally.

— Section 86 of Act No. 513/1991 Coll. (unofficial English translation)

Jointly and severally means that the creditor may choose which partner to claim the whole debt from, regardless of that partner’s share in the profit. The general rules on guarantee liability apply mutatis mutandis to the liability of partners (Section 56(6)). The creditor therefore turns first to the partnership and may sue a partner only once the partnership has failed to perform a due obligation even within a reasonable time after a written demand; no demand is needed where it cannot be made or where it is beyond doubt that the partnership will not pay, in particular in bankruptcy (Section 306(1)). A partner who has paid on the partnership’s behalf acquires the creditor’s rights against it (Section 308).

What changes on leaving

A partner may leave the partnership by amending the partnership agreement, provided at least two partners remain in it (Section 83). Where the partnership is for an indefinite period, a partner may also give notice, but that dissolves the partnership, which may continue only if the remaining partners agree to it within three months by amending the partnership agreement (Section 88(1)(a) and (2)). For liability, the decisive moment is when participation ends:

Where a partner’s participation ends during the existence of the partnership, they are liable only for obligations that arose before their participation ended.

— Section 87(2) of Act No. 513/1991 Coll. (unofficial English translation)

What matters is when the obligation arose, not when it fell due. If the partnership drew down a loan before you left, the creditor may turn to you even where the partnership stops repaying only several years later. With recurring performance, such as rent, it may be disputable which partial obligations arose while you were still a partner. On leaving, it is therefore worth knowing what obligations the partnership has and agreeing with the remaining partners how they will settle them, or agreeing with the creditor that you are released from liability.

A new partner takes on the old debts too

The opposite direction matters just as much to anyone joining an existing partnership. A partner who has acceded to the partnership is liable also for obligations that arose before their accession; they may claim from the other partners reimbursement of what they have paid for those obligations and the associated costs (Section 87(1)). Before joining a general partnership it is therefore necessary to check its obligations as thoroughly as when buying a company.

Bankruptcy and dissolution of the partnership

Where bankruptcy is declared over the partnership’s assets, the partners are liable only up to the amount by which creditors whose claims were lodged in time have not been satisfied in the bankruptcy (Section 56(6)). Nor does the partnership ceasing to exist end their liability: the partners are then liable up to the amount of their share in the liquidation balance, but at least to the extent to which they were liable during its existence (Section 56(7)), which in a general partnership means with all their assets.

How to prepare

The rules on departure, settlement and mutual adjustment between partners where one of them pays a creditor more than corresponds to their share belong in the partnership agreement from the outset. We prepare them as part of our formation of a general partnership service. If personal liability is too great a risk for your plans, our choice of legal form service offers a comparison with forms carrying limited liability. The partners of a general partnership are entered in the Commercial Register (Section 9(e) of Act No. 29/2026 Coll.), and after leaving it is in the departing partner’s interest for the entry to be changed as soon as possible. A person to whom an entered detail relates cannot object to its inaccuracy as against a third party if they have not seen to a correction that could fairly have been required of them, unless they prove that the third party did not rely on the entry or knew, or must have known, of its inaccuracy (Section 7(4) of Act No. 29/2026 Coll.). We arrange the change of entry as part of changes in the Commercial Register.

This answer provides general information on the law as at 12 September 2026. It does not constitute legal services or replace an assessment of an individual case. The details of your situation may differ. Book a consultation to discuss them.

More legal questions

All questions and answers
  1. We are setting up a startup as an s.r.o. Is a memorandum of association enough, or do we also need a founders’ agreement? For a startup, usually both, because each document does a different job. The memorandum of association has statutory content, is deposited in the public collection of documents and binds the company and every future member. A founders’ agreement under Section 66c of the Commercial Code is not public and binds only those who signed it; vesting, roles, rights to the product and the rules for parting company belong there. Both documents are drafted together, so that they do not contradict each other.
  2. A co-founder programmed a prototype before the company was formed. Who owns the code and how do we get it into the company? The code belongs to the founder as its author, not to the company, unless they wrote it in the course of work for another employer or client. The rule on employee works does not apply as against the company, because the company did not exist when the code was created and the founder had no employment relationship or office with it. The company may use the code only with the author's consent, and therefore needs a written licence agreement: exclusive, covering every necessary manner of use including modifications, and with consent to sub-licences and assignment of the licence given in advance.
  3. My fellow member reserved the business name in their own name. May we register our s.r.o. under it? Yes, if you prove entitlement to use the reserved name when filing the registration application. Identity with a name reserved under Section 51(2) of Act No. 29/2026 Coll. is not an obstacle to registration where the applicant (for an s.r.o., all the managing directors) proves such entitlement. The provision does not specify by what document; in practice, written consent from the party that reserved the name, given for the specific company, is the way to do it. Without entitlement the name remains blocked until the reservation lapses.
  4. When should we reserve a business name so that 60 days are enough to form an s.r.o.? Only once your founding documents are all but ready. A reservation ends when the name is entered, and in any event 60 days after delivery of the confirmation; the Act makes no provision for extending it. Signing the memorandum of association in the required form, filing the application and the registration itself, including any objections, must all fit within that window. The longer statutory period for filing the application does not extend the reservation.

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Mgr. Patrik Tulinský, LL.M. Czech and Slovak attorney · SAK 300422 · ČAK 19654

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