KGaA in Germany

UG company in Germany
UG company in Germany
May 19, 2024
KGaA legal form in Germany

KGaA legal form in Germany , Wise Business Group

The first step you must take to establish a business in Germany is to determine which legal form best matches your business needs. We discussed the advantages and disadvantages of several common legal forms in Germany in Wise Business Group blog posts. You can read them to know which is the best for your business. Here, we explain the characteristics of KGaA legal form in Germany in detail.

Read more: Legal form in Germany.

Characteristics of a limited partnership with shares (KGaA) in Germany

The legal form of limited partnership with shares (Kommanditgesellschaft auf Aktien, KGaA) in Germany is a combination of the structure of both joint stock companies (AG) and limited partnership (Kommanditgesellschaft). These types of companies combine the entrepreneurial commitment and the individual role of shareholders with unlimited liability (General Partner) with the function of the joint stock company as a public company and a source of capital. In other words, we can introduce a KGaA as a joint stock company whose shareholders (General Partners) and not the Board of Directors (Management Board) have individual liability in the company.

The legal form of limited partnership with shares (KGaA) is a dominant and common legal form in Germany. This legal form is responsible for paying Income Tax, Solidarity Surcharge, and Trade Tax.

Liability of partners (shareholders) in KGaA in Germany

The KGaA legal form in Germany can have an unlimited number of limited shareholders. Their responsibility for the investment is limited to the share of their capital in the company. Also, they have no obligation for amounts higher than that. The minimum share capital of these companies is 50,000 Euros. Limited shareholders have more or less the same legal rights as shareholders in a joint stock company (AG). At least one of the shareholders of these types of companies must take responsibility for the company’s debt and obligations without limits (ceiling).

Registration of a KGaA company in Germany

A limited partnership with shares (KGaA) like stock companies in Germany must be commercially registered. Also, it should register its activity with the regional trade office.

Registering and setting up a company in Germany

We at Wise Business Group, with several years of experience in company formation and business setup in Germany can accompany you in this field. In case you intend to obtain a German residence permit by registering a company and starting a business, contact us.

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Company Formation

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