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Start A KG
Start a Kommanditgesellschaft
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The German Kommanditgesellschaft is most compareable with a Limited Liability Partnership in the UK or the Commanditaire Venootschaap in the Netherlands. Main Character of this "Hybrid" legal entity is that it has shareholders, whereby on shareholder is fully liable, all others have the risk limited to their paid up capital. For this reason it is common to use an incorporated entity with limited liability as the liable shareholder. Depending on the entity form, the KG must disclose such shareholder relations in itsname. E.g. if a GmbH is used as the liable shareholder the legale suffix to each company name is GmbH & Co.KG. The liable shareholder can also be a foreiegn entity, for example a British Ltd. The suffix tehn would be Ltd & Co KG.
The KG must be registered in the German Trade registers of the applicable distric court, where the company is to reside. This will usually be done by notary deed together with the deeds of association between the liable shareholder (Komplementaer) and the investors (Kommanditisten)
It may be mentioned, that although there is a vast number of Ltd & Co KG - form the point of creditability on the local market it is not recommended to use a Ltd as liable shareholder. There has been to much abuse of this legal construction that it even gets difficult to open a business bank account in Germany. Alternatively we offer the service to use Deutsche Celtus Trustee GmbH to act as management company in good faith. Please feel free to contact us to discuss details of such conctruction
