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.
|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.|
EBIT - Trade tax on income of 12% - 21%
Each partner?s portion is subject to his personal income tax or corporation income tax. Credit of trade tax on income only against the partners? personal.
income tax (only for individuals). No dividend withholding tax.