Limited partnership (KG)
The Limited Partnership (Kommanditgesellschaft - KG) is a special legal form for a trading company. It is suitable for entrepreneurs who are looking for additional start-up capital, but who want to retain sole decision-making authority in the company. The partners of a KG are the entrepreneur (general partner) and other partners (limited partners). The latter’s participation in the company is limited to the financial side. The general partner manages the business alone (unless otherwise regulated in an agreement). He or she is liable to full extent of his/her personal fortune. The partners, on the other hand, are liable solely to the extent of their contributions.
The conclusion of a partnership agreement is possible; no specific form is required. The KG must be entered in the Commercial Register.
Advantages
No minimum capital required; additional equity; entrepreneur is highly independent.
Disadvantages
General partner is liable to full extent of his/her personal fortune.
The Limited Partnership (Kommanditgesellschaft - KG) is a special legal form for a trading company. It is suitable for entrepreneurs who are looking for additional start-up capital, but who want to retain sole decision-making authority in the company. The partners of a KG are the entrepreneur (general partner) and other partners (limited partners). The latter’s participation in the company is limited to the financial side. The general partner manages the business alone (unless otherwise regulated in an agreement). He or she is liable to full extent of his/her personal fortune. The partners, on the other hand, are liable solely to the extent of their contributions.
The conclusion of a partnership agreement is possible; no specific form is required. The KG must be entered in the Commercial Register.
Advantages
No minimum capital required; additional equity; entrepreneur is highly independent.
Disadvantages
General partner is liable to full extent of his/her personal fortune.