Limited-partnership business

From German “Kommanditgesselschaft” a limited-partnership business entity is a business entity established by two types of associates, with a purpose of making business. There are general partners (Komplementär) with unlimited liability and limited partners (Kommanditisten) whose liability is restricted to their fixed contributions to the partnership.

General partners and limited partners have a different legal status, hence they have different obligations. General partners are entitled to control and make decisions whereas limited partners are only entitled to supervise. It is better suited for being awarded a bank credit than a public commercial company; however, its profit is divided between the general partners and limited partners according rather complicated set of rules.