Partnership (Personengesellschaft)
Also: Personengesellschaft, unincorporated partnership
In short
In a partnership, at least two partners join together, and the partnership depends on their personal involvement; examples are the GbR, OHG, KG and PartG. There is no minimum capital, but at least one partner is liable without limit.
Partnership (Personengesellschaft) explained
The basic form is the GbR; the OHG and KG build on it. Partnerships can have legal capacity, but they are not legal entities (Sec. 14 BGB). The partnership agreement generally does not need a notary; only the register applications are certified: the OHG and KG in the commercial register, the eGbR in the partnership register. For tax purposes, the partnership itself pays no income tax; its profit is allocated proportionately to the partners. Commercial partnerships pay trade tax with an allowance of €24,500, which the partners can largely credit against their income tax. The OHG, KG, PartG and eGbR can apply to be taxed like a corporation (Sec. 1a KStG).
