Partnership law is characterized less by formal stringency than by its high flexibility. Only few circumstances of life and factual states of affairs cannot reasonably be represented in a partnership agreement.

Different distribution of equity participation and of decisional powers are as well representable as syndicate agreements, voting trust agreements, pool agreements and management companies - to mention a few examples. Especially in the highly "personalized" field of family partnerships the legal forms of civil law partnership, general commercial partnership and limited commercial partnership remain invariably popular.

In spite of liability-related legal disadvantages the partnership is still by far the most common legal form in Germany. From a civil and tax law point of view and with respect to the so far considerably different fiscal situation as compared to stock corporations it should be considered carefully whether a partnership means a reasonable solution. Hybrid forms such as split of enterprise, typical and untypical silent partnership, GmbH & Still (limited liability company with a silent partner), GmbH & Co KG (limited partnership with a GmbH as a general partner), KGaA are keywords for possible options.


< back