General partnership (OHG)
The general partnership (Offene Handelsgesellschaft - OHG) is a legal form for merchants who want to establish a trading company together with a partner. No minimum capital is required. Unless otherwise agreed in the partnership agreement, the partners are liable for the debts of the OHG to the extent of their shares in the partnership and their personal fortunes. All of the partners are entitled to manage the business. However, it is possible for them to appoint one partner as the manager of the business in the partnership agreement.
The conclusion of a partnership agreement is possible; no specific form is required. The OHG must be entered in the Commercial Register.
Advantages
No minimum capital required.
Disadvantages
All of the partners of the OHG are liable to the full extent of their personal fortunes.
The general partnership (Offene Handelsgesellschaft - OHG) is a legal form for merchants who want to establish a trading company together with a partner. No minimum capital is required. Unless otherwise agreed in the partnership agreement, the partners are liable for the debts of the OHG to the extent of their shares in the partnership and their personal fortunes. All of the partners are entitled to manage the business. However, it is possible for them to appoint one partner as the manager of the business in the partnership agreement.
The conclusion of a partnership agreement is possible; no specific form is required. The OHG must be entered in the Commercial Register.
Advantages
No minimum capital required.
Disadvantages
All of the partners of the OHG are liable to the full extent of their personal fortunes.