Search results
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 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.
- Limited Liability Company & Co. Kg – Meaning
- Composition – Parties Involved
- Minimum Capital and Formation Costs
- Formation of A GmbH & Co. Kg: What You Must Bear in Mind
- Managing Director of GmbH & Co. Kg
- Shared and Limited Liability: Clear Distribution of Risk Between Partners
- Taxes: Kg and Partners Share Costs
- Advantages, Disadvantages and Naming
GmbH & Co. KG is an abbreviation and stands for Gesellschaft mit beschränkter Haftung & Compagnie Kommanditgesellschaft. It is a joint venture, similar to the limited partnership (KG). The main difference is that in this case the general partner is a limited liability company and not a natural person. In contrast, the natural person who contributes...
The terms “general partner” and “limited partner”, which refer to the different types of partners, are important in the context of the legal form.
Since the general partner is a GmbH, the formation of a GmbH & Co. KG requires a capital contribution of 25,000 euros. Alternatively, a UG can assume the role of general partner in a UG & Co. KG by contributing at least one euro of capital. Both the limited partner and the general partner GmbH agree on the amount of the contributions in the partner...
Every company must have a personally liable partner in addition to the other partners. The GmbH & Co. KG can be founded if it is entered in the commercial register. The basic features of the company are laid down in the articles of association or partnership agreement. The limited partners’ liability ceases completely if it is also entered in the c...
The management of such a corporate form is under the control of the GmbH. Whereas the GmbH is not a natural person and therefore cannot act as managing director of the company. Consequently, the managing director of the GmbH is also the managing director of the GmbH & Co. KG. However, it should be noted that the management of the GmbH does not nece...
Since a GmbH can function as a limited liability company, the limitation of the general partner’s responsibility is an advantage of this structure. In this case, the shareholders of the limited liability company are not personally responsible. There are no significant differences between the KG and other types of contracts. This means that in case ...
It should be noted that both the general partner GmbH and the GmbH & Co KG are independent legal entities with separate tax obligations. Depending on the type of delivery or service, this amounts to 19 % or 7 % of the total amount. Since the GmbH & Co. KG can only be founded by traders, trade taxis also due. Wage tax is paid by the employer if he e...
In addition to being entered in the commercial register, the GmbH & Co. KG appears in business transactions as a corporation. Personal names, the object of the company or even an imaginary name can be used in the composition of the name. In addition, founders have the option of using a mixture of these components. Furthermore, the company names of ...
Apr 3, 2024 · GmbH & Co. KG is a unique hybrid company structure in Germany that combines elements of GmbH and KG, offering a balance of liability protection and operational flexibility. To comprehend the nuances of this business form, it is essential to delve into the distinct roles and characteristics of both GmbH and KG within the framework of a GmbH & Co. KG.
The GmbH & Co. KG is a particularly attractive legal form for medium-sized businesses in Germany. It combines the advantages of a limited liability company (GmbH) with those of a limited partnership (KG), making it a flexible business structure with limited liability.
Apr 30, 2024 · GmbH & Co. KG: A combination of GmbH and KG; gGmbH: A non-profit GmbH; What does GmbH stand for? GmbH is an abbreviation of the German phrase “Gesellschaft mit beschränkter Haftung,” which ...
People also ask
What is a GmbH & Co KG?
Is GmbH & Co KG a partnership?
What makes GmbH & Co KG a successful company?
What does GmbH stand for?
Is a GmbH a company?
Can a GmbH & Co KG be founded?
The GmbH & Co. KG is a special legal form which is partially comparable with the USA’s Limited Liability Company (LLC). This form of company unites the tax advantages and company law advantages of a corporation and a personal company. Precisely speaking, it is in fact two companies: a GmbH as a limited liability corporation and a limited ...
