Kommanditselskab
Encyclopedia
A kommanditselskab is the Danish
equivalent of the 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
with the least possible capital, thus reducing the liability of the K/S to the capital of the Anpartsselskab.
for the debts of the partnership while the limited partners have limited liability
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.
Denmark
Denmark is a Scandinavian country in Northern Europe. The countries of Denmark and Greenland, as well as the Faroe Islands, constitute the Kingdom of Denmark . It is the southernmost of the Nordic countries, southwest of Sweden and south of Norway, and bordered to the south by Germany. Denmark...
equivalent of the limited partnership
Limited partnership
A limited partnership is a form of partnership similar to a general partnership, except that in addition to one or more general partners , there are one or more limited partners . It is a partnership in which only one partner is required to be a general partner.The GPs are, in all major respects,...
. 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
ApS is an abbreviation for "", the Danish term for a limited liability 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 80,000 DKK .-References:*...
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 liabilityJoint 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:...
for the debts of the partnership while the limited partners have limited liability
Limited liability
Limited liability is a concept where by a person's financial liability is limited to a fixed sum, most commonly the value of a person's investment in a company or partnership with limited liability. If a company with limited liability is sued, then the plaintiffs are suing the company, not its...
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 partnershipLimited partnershipA limited partnership is a form of partnership similar to a general partnership, except that in addition to one or more general partners , there are one or more limited partners . It is a partnership in which only one partner is required to be a general partner.The GPs are, in all major respects,...
The corresponding common lawCommon lawCommon law is law developed by judges through decisions of courts and similar tribunals rather than through legislative statutes or executive branch action...
term. - KommanditgesellschaftKommanditgesellschaftA Kommanditgesellschaft is the German name for a limited partnership business entity and is used in German, Austrian and some other European legal systems....
The corresponding term in German law.
External links
- The Private Companies Act The Danish law regulating the K/S.