A kommanditselskab (; abbreviated K/S) is the
Danish equivalent of the
limited partnership
A limited partnership (LP) is a type of partnership with general partners, who have a right to manage the business, and limited partners, who have no right to manage the business but have only limited liability for its debts. Limited partnership ...
. The owners are divided into general partners (''komplementarer'' in Danish) and limited partners (''kommanditister'' in Danish). Often the only general partner of a K/S is an
Anpartsselskab
(; ApS) is the Danish term for a private limited company. ApS, when appended to the end of a Danish company name, is similar to Ltd. after the name of a British company. An ApS is required to have capital of at least 20,000 DKK (approx. 2, ...
with the least possible capital, thus reducing the liability of the K/S to the capital of the Anpartsselskab.
Liability
The general partners have
joint and several liability for the debts of the partnership while the limited partners have
limited liability
Limited liability is a legal status in which a person's financial Legal liability, liability is limited to a fixed sum, most commonly the value of a person's investment in a corporation, company, or joint venture. If a company that provides limi ...
i.e. they are only liable on debts incurred by the firm to the extent of their investment.
Often it is the general partners who are running the company while the limited partners acts as passive investors.
Taxation of a K/S
In Danish tax law a K/S is not taxable and does thus not pay corporation taxes. This means that the assets of the K/S is taxed as personal assets of the owners. This is a great advantage if the K/S is having a deficit as this can be subtracted from the taxable income of the owners.
See also
*
Limited partnership
A limited partnership (LP) is a type of partnership with general partners, who have a right to manage the business, and limited partners, who have no right to manage the business but have only limited liability for its debts. Limited partnership ...
The corresponding
common law
Common law (also known as judicial precedent, judge-made law, or case law) is the body of law primarily developed through judicial decisions rather than statutes. Although common law may incorporate certain statutes, it is largely based on prece ...
term.
*
Kommanditgesellschaft
A (abbreviated KG, ; from + ) is the German name for a limited partnership business entity and is used in German, Belgian, Dutch, Austrian, and some other European legal systems. In Japan, it is called a '' gōshi gaisha''. Its name derives ...
The corresponding term in German law.
External links
The Private Companies ActThe Danish law regulating the K/S.
{{law-stub
Danish business law
Types of business entity
da:Kommanditselskab