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  

The Ltd. & Co KG can also be established as a one-person company. Initially, a Ltd. is established. This entity is an independent legal personality and acts as the fully liable partner (general partner) of the Ltd. & Co KG. The entrepreneur and/or other individuals become limited partners with a freely chosen contribution. The internal legal relations can be structured as desired in the partnership agreement of the KG that is to be created. The KG is registered with the German commercial register and entered as Ltd. & Co KG.  

The Ltd. & Co. KG is particularly interesting because it combines the essential advantages of a corporation with the benefits of a partnership. Additionally, a German KG is registered in the commercial register.  

- Personal liability is excluded  
- Withdrawals are simple to make  
- Taxation occurs at the level of the partners. The entrepreneur can offset profits and losses from individual projects. For entrepreneurs residing permanently abroad, the Ltd. & Co. KG can also be a sensible solution for becoming active in the German market.