How to set up a limited partnership in Germany?

This is basically a partnership but provides a limitation of liability on behalf of some of the partners. A KG bears two kinds of partners: 1) the general partner (Komplementär), who has an unlimited liability extending to his or her personal assets, and 2) the limited partner (Kommanditist) whose liability extends only to his or her nominal holdings in the company.

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Overview

Liability	The general partners are unlimitedly, jointly and severally liable for the partnership’s liabilities. The Limited Partners are only liable with their capital contribution to the company.
Statutory capital	Not required
Corporate bodies	Only the General Partners are entitled to represent the company. The Limited Partnership is not a corporate entity. The partners represent the company. General Partnership is not a corporate entity.
Company taxation	EBIT - Trade tax on profit of 12% - 13% = Tax basis for the partners’ income tax. Each partner’s portion is subject to his personal income tax or corporation company tax. Credit of trade tax on income only against the partners’ personal income tax (only for individuals). No dividend withholding tax.

How to set up a limited partnership in Germany?

There are two types of partners: the one who takes big responsibility (general partner), and the other who takes less (limited partner). Want to know more about limited partnership? Check out the following article to learn more about this topic.

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Overview