Set up your German KG with expert legal and administrative support.
At Open A German Company, we help entrepreneurs and investors establish a Kommanditgesellschaft (KG) — Germany’s limited partnership business structure. This flexible company type allows for both active partners managing the business and passive partners providing capital investment. What is a KG?
A Kommanditgesellschaft (KG) is a partnership with at least one general partner (Komplementär) who has unlimited liability and at least one limited partner (Kommanditist) whose liability is restricted to their capital contribution.
This structure is ideal for businesses seeking outside investment without giving up full control over day-to-day management.
Key Features of a KG
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Minimum Partners: One general partner and one limited partner
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Capital Requirement: No statutory minimum capital (capital contribution by limited partners is agreed in the partnership contract)
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Liability: General partner has unlimited liability; limited partners are only liable up to their capital contribution
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Management: Exclusively handled by the general partner(s) unless otherwise agreed
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Taxation: Profits are taxed at the partner level (personal income tax for individuals)
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Registration: Must be entered into the Commercial Register (Handelsregister)
Advantages of a KG
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Ability to attract investment from limited partners without granting management control
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Simple and cost-effective structure with minimal formalities
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Flexible profit-sharing arrangements in the partnership agreement
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No mandatory minimum share capital requirement
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Suitable for family businesses, SMEs, and investment-backed ventures
Our KG Formation Services
We provide full-service support for KG registration in Germany, including:
1. Partnership Agreement Drafting
Legal preparation of the partnership contract specifying capital contributions, profit distribution, and management roles.
2. Name Registration
Assistance in selecting and registering your KG’s trade name.
3. Commercial Register Filing
Handling the registration process with the Handelsregister.
4. Tax & Trade Registration
Registering with the Gewerbeamt (trade office) and tax authorities.
5. Bank Account Assistance
Setting up a dedicated German business bank account for your KG.
6. Ongoing Compliance
Accounting, VAT registration, and tax filings to keep your partnership compliant.
Who Should Choose a KG?
A KG is best suited for:
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Businesses where owners want to raise capital without giving up control
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Ventures combining active business operators and passive investors
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Family businesses involving different roles and risk levels among members
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Small and medium enterprises seeking a flexible structure
Why Choose Us
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Over 20 years of experience in German business formation
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English-speaking legal and tax experts
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Transparent fixed-fee pricing
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End-to-end services from setup to ongoing compliance
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Strong network of accountants, notaries, and legal advisors in Germany
Incorporating a Company Elsewhere in Europe?
If you are looking to set up a company in other European jurisdictions, visit our sister company Sociedad Europea for professional incorporation services across the continent, with the same trusted expertise and personalised support.