There are two German partnership forms in common use, the general
partnership (offene Handelsgesellschaft – oHG) and the limited partnership
(Kommanditgesellschaft – KG). Legally, the KG is a variation on the oHG; thus
the rules applicable to an oHG apply equally to a KG unless an exception is
expressly provided for. The difference between the two forms is that some
(but not all) of the partners of a KG have limited liability.
A partnership is not a legal entity, although it can acquire rights and assume
obligations in its own name, take up ownership and other rights to real estate,
and sue or be sued. It is therefore a separate business entity from an operating
point of view, although it is not legally separate from its owners (the partners)
in many respects, including taxation.