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Apr 3, 2024 · In German corporate law, as the name suggests, the GmbH & Co. KG is a hybrid of the legal forms of the GmbH (limited liability company) and the Kommanditgesellschaft (KG) limited partnership. But, despite this hybrid form, the GmbH & Co. KG is still a KG (limited partnership) and, therefore, is categorised as a Personengesellschaft (partnership ...
The GmbH & Co. KG is subject to certain disclosure requirements. This includes the publication of the annual financial statements in the electronic Federal Gazette, especially if it exceeds a certain size. Co-Determination. From a certain size, the GmbH & Co. KG is subject to the provisions of the Co-Determination Act.
The GmbH & Co. KG is a favourable choice for start-ups in Germany because of its many benefits. Businesses frequently use this hybrid legal form for asset management, while trading firms rely on it to limit shareholder liability risk. In this article, you will learn what a GmbH & Co. KG is and how it differs from a traditional GmbH.
Civil law company / General partnership (GbR / OHG) German Limited Partnerships (GmbH & Co. KG) The GmbH & Co. KG is a special form in German (and Austrian) law, which does not exist in most other states and is partially comparable with the USA’s Limited Liability Company (LLC).
- Introduction of Legal Form GmbH & Co. Kg in Germany
- Features of Limited Liability and Partnership Company in Germany
- Establishment of A GmbH & Co. Kg Company in Germany
- Advantages and Disadvantages of GmbH & Co. Kg Compared to GmbH in Germany
Limited liability and limited partnership company or legal form GmbH & Co. KGin Germany is two types of companies combination: a partnership and a corporation. However, under German law, GmbH & Co. KG is a limited partnership company (KG) and therefore is a partnership. The notable feature of GmbH & Co. KG is that the general partner is not a natur...
Shareholders in a limited liability and limited partnership company in Germany can usually choose whether to participate in these two companies separately. For this reason, there are various legal formsof GmbH & Co. KG in Germany.
The establishment process of GmbH & Co. KG company in Germany is significantly more complicated than a simple GmbH. A KG must be established parallel to a GmbH or even before it. Thus, two Articles of Association(one for the GmbH and one for the KG) are required. Similar to a simple limited liability company, setting up a limited liability and limi...
Founders in Germany constantly face the question of whether the legal form GmbH & Co. KG is more appropriate for their company or GmbH. Even if a GmbH & Co.KG has legal (tax) advantages compared to a GmbH, it is always necessary to examine which legal form best aligns with the shareholders’ goals. Therefore, the following is merely an overview of t...
The general partner functions as a fully liable participant and therefore is liable for outside obligations of the KG, in an unlimited manner with his entire assets. Because a GmbH & Co. KG fills this position with a GmbH, its liability is however limited to its own business assets, and the whole GmbH & Co. KG is finally only liable for the ...
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What is a GmbH & Co KG?
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The most common corporate forms for commercial ventures are the following: GmbH: limited liability company; UG (limited liability): the entrepreneurial company is the little sister of the GmbH. AG: stock corporation. GmbH & Co. KG: limited partnership with a general partner GmbH; if the general partner is a UG, it is called UG & Co. KG.
