A kommanditselskab (; abbreviated K/S) is the
Danish equivalent of the
limited partnership
A limited partnership (LP) is a form of partnership similar to a general partnership except that while a general partnership must have at least two general partners (GPs), a limited partnership must have at least one GP and at least one limited ...
. 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
A private limited company is any type of business entity in "private" ownership used in many jurisdictions, in contrast to a publicly listed company, with some differences from co ...
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
Where two or more persons are liable in respect of the same liability, in most common law legal systems they may either be:
* jointly liable, or
* severally liable, or
* jointly and severally liable.
Joint liability
If parties have joint liabilit ...
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 liability is limited to a fixed sum, most commonly the value of a person's investment in a corporation, company or partnership. If a company that provides limited liability to it ...
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 form of partnership similar to a general partnership except that while a general partnership must have at least two general partners (GPs), a limited partnership must have at least one GP and at least one limited ...
The corresponding
common law
In law, common law (also known as judicial precedent, judge-made law, or case law) is the body of law created by judges and similar quasi-judicial tribunals by virtue of being stated in written opinions."The common law is not a brooding omnipresen ...
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 fr ...
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