Who Can Form A Ltd & Co Kg In Germany And What Are Its Requirements

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Ltd & Co Kg is the English equivalent of the German GmbH Co & Kg and is the simplest, easiest and the most cost-effective company formation option in Germany for new upcoming entrepreneurs. The Ltd Kg is an independent entity, as it is responsible for the company operations in Germany and is governed by the laws applicable to all the other company forms in the country. Company formation agents like Panlegis can help you set up your company in Germany within hours.

According to the European Court of Justice, incorporation of a company in any EU member states is possible without hassle, which goes the same for the Ltd & Co Kg, which is like the GmbH as concerns its business and taxation rights. However, unlike the GmbH, which requires a minimum share capital of EUR 25,000, the Ltd Kg can be formed with a just a small capital of EUR 1. Also there are no personal liabilities involved, which make it a cheap and feasible company formation option in Germany. The only requirement is for the company to be registered in England or another EU country for it to be valid and enjoy the rights of a GmbH.

A Ltd & Co Kg company formation can be accomplished within the day while a GmbH formulation can take weeks to achieve. Although the former is liable to pay tax to the German government, it enjoys some great tax benefits such as a business tax-free allowance of up to EUR 24,500. Also, the main Limited company does not have to bother about the balance sheets of the Ltd Kg, as these need not be transferred to the main registered office.

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