A KG (Kommanditgesellschaft) is a type of partnership in Germany where at least one partner (the general partner) is fully liable with their personal assets, while at least one other partner (the limited partner) is liable only up to the amount of their capital contribution.  

It is common practice to appoint a corporation as the general partner. This could be a GmbH, AG, or even a Limited company. This arrangement prevents the entrepreneurs' private assets from being liable. At the same time, the advantages of a partnership are preserved (more on this below). By using a Limited company as the fully liable general partner, the required minimum capital contribution for a new project can also be significantly limited.  

An entrepreneur can offset their profits from a Kommanditgesellschaft, for example, with losses from other business activities (such as from another Ltd. & Co KG or from rental and leasing).... read more