A real estate entrepreneur that had exhausted all financing options for various projects needed additional financing for a project covering approximately 350 thousand m2 (about 87 acre) planned to include approximately 2,000 residential units, commerce and hotel area.
It was obvious that the only way to promote the project was by enrolling partners. However, some of the potential partners who expressed willingness to join forces with the developer stipulated that it will enable them maintaining their tax status as private individuals, until the project would mature and start to yield profits (after covering the expenses).
The solution, which also had taxation consequences (see taxation / national insurance chapter) was to form a legal system based on partnership laws, which is better known in the venture capital funds field.