The KG is particularly advantageous for entrepreneurs who wish to become partners with additional capital, but wish to remain the sole boss in the company. It is also interesting for family members who do not want or should not be personally liable. The KG consists of the entrepreneur (general partner) and further partners (limited partners).
Foundation of the KG
The articles of association are free of form. The KG must be entered in the commercial register. There is no minimum capital requirement.
Corporate management in the KG
In a KG, you as a general partner have the sole right of decision (unless a contract provides otherwise). If there are several general partners, each of them has the sole right to manage and represent the KG. The limited partners are excluded from the management; they only have a financial interest in the company.
Liability of the KG
As a general partner, you have unlimited liability with your entire private assets. Limited partners are only liable to the extent of their contributions.
Taxes of the KG
As a co-entrepreneur of the company, you generate income from business operations in accordance with tax law. As general partner, you are liable for all debts, i.e. also for tax debts of the company, with your entire assets; as limited partner, you are only liable up to the amount of your contribution.