The KG is an unincorporated firm. The KG is like oHG the unincorporated firm,however with capitalistic impact.The establishment of the unincorporated firm does not depend on a certain minimum capital.

Differently than the personally responsible partners limited partners in the society do not cooperate normally.

The nature of the GmbH & CO. KG is coined/shaped by the membership connection by unincorporated firm and finance company.

A trade is forwards with an independent, outward recognizable, legal activity, those on durability and realization of profits is put on and no free occupation (e.g. physicians, attorneys, tax counsel, etc..) as well as no primary production (agriculture, etc..) is.

In Germany freedom of trade prevails. Everyone, which wants to exercise a trade, has in principle in addition the right.

An enterprise, which operates a trade, can be organized in different kinds. Each enterprise, which operates a trade, must consider the regulations of the trade and industrial regulations (GewO) in the version of the proclamation from 1 January 1987. Additionally it falls the KG as enterprise, which already achieved a certain order of magnitude, under the organization-legal regulations of the commercial code (HGB), independently of the fact whether she operates a trade in the closer conventional sense.

As trade enterprises, those are considered the typical commercial activities after the commercial code (HGB) (in former times: Basic trade) exercise: e.g. the large and retail trade, which producing trades, bank and insurance trade, carrying trade, commercial agent etc., in addition, persons, which operate commercial enterprise relating to crafts or an other, are considered as buyers.

KG's are obligated like all buyers to let their enterprises register in the trade register. Enterprises, which operate after kind and extent a business concern, which does not have to be furnished in commercial way, need in the trade register are not registered. They are obligated only to announce at the responsible office for trade a trade. For distinction to the buyer one calls these enterprises of smaller order of magnitude smallmanufacturing (KGT) or also only manufacturing ones. These enterprises, which operate a business concern, which is not furnished in commercial way after kind and extent, can themselves (voluntarily) into the trade register register let and be considered thereby as a buyer with all rights and obligations.

If several persons are owners of a smallmanufacturing enterprise, then one calls this firm's structure society of civil right (GbR).

The KG is a society, whose purpose is directed toward the enterprise of a trade under joint company, at which at least one partner unrestrictedly clings. With other partners the adhesion is limited opposite the company creditors to the amount of a certain fortune insert.

The right of the KG is regulated in §§ the 161-177 A commercial code (HGB). The regulations find to oHG (§ § 105-160 HGB) and the regulations supplementing over the society (GbR) (§ § 705-740 BGB) application. The KG must be registered into the trade register.

Special case: GmbH & CO.KG here concern it a subspecies of the kg. The designation GmbH & CO.KG results from the fact that instead of one or several natural persons a GmbH is personally responsible Shareholder of the KG. On the GmbH & CO.Kg is to be used the right of the KG. Characteristics of this legal form connection are therefore treated together under this chapter (KG).

As OHG applies the KG as typical company form to medium-size enterprises. Regarding the capitalistic arrangement it is suitable even for larger enterprises. It is particularly popular in the combination of the GmbH & CO.Kg, in which the advantages of the finance company (limitation of liability) with those can be combined the unincorporated firm.

The GmbH & CO.KG give the possibility of being excluded at an unincorporated firm the full personal adhesion of all natural persons involved and of being nevertheless essentially treated and of being taxed as unincorporated firm.

The personally responsible partners (complementary one) are buyers. The limited partners are against it no buyers.

For company debts is responsible the KG with the corporate assets (total hand ability). Additionally cling the complementary one personally. A limitation of liability the complementary one on the corporate assets is not possible.

The limited partner clings opposite to society debtors only with his insert. If this is performed, a further adhesion of the limited partner is impossible. The limitation of liability of the limited partner applies however only starting from the entry in the trade register. It clings unrestrictedly, if the society began the business already before and the creditor did not know the characteristic as a limited partner.

Since the GmbH already clings to strength of law only with its own fortune, from it a limitation of liability of the GmbH & CO.KG results following likewise.

The partners KG are normally not liable to social security as independent ones (old age pension insurance, health insurance and unemployment insurance). A voluntary far insurance in the legal health insurance is possible for former employees. In addition the possibility exists of requesting an obligation insurance or a voluntary insurance in the legal old age pension insurance. In some industries also an entrepreneur is insurance requiring in the legal accident insurance (professional associations), if it does not employ employees.

The corporate assets are entitled as with OHG all partners including limited partners to the entire hand. Each partner is involved with its capital share, whose height is shown by the balance and which in a certain money is expressed.

The insert can exist in money, real values or in the achievement of services. The modalities of the deposit can be agreed upon freely.