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GmbH & Co. KG

The GmbH & Co. KG is a limited partnership with a special feature: the entrepreneur (general partner), who is liable to the full extent of his/her personal fortune in the case of a simple KG, is a GmbH. This provides to you a means for limiting your liability as the general partner. The GmbH & Co. KG is ideal if you want to operate a trading company as limited partnership, but do not want the high liability risk of the KG. The GmbH partners are usually the limited partners of the KG.
The conclusion of a partnership agreement is possible; no specific form is required. The GmbH & Co. KG must be entered in the Commercial Register.

Advantages

Limited liability; additional equity.

Disadvantages

Minimum capital of €25,000 required for the GmbH. Formation formalities and accounting are more extensive.

The GmbH & Co. KG is a limited partnership with a special feature: the entrepreneur (general partner), who is liable to the full extent of his/her personal fortune in the case of a simple KG, is a GmbH. This provides to you a means for limiting your liability as the general partner. The GmbH & Co. KG is ideal if you want to operate a trading company as limited partnership, but do not want the high liability risk of the KG. The GmbH partners are usually the limited partners of the KG.
The conclusion of a partnership agreement is possible; no specific form is required. The GmbH & Co. KG must be entered in the Commercial Register.

Advantages

Limited liability; additional equity.

Disadvantages

Minimum capital of €25,000 required for the GmbH. Formation formalities and accounting are more extensive.