A decree of the German Finance Ministry
According to a decree of the German Finance Ministry the
following criteria could be used in order to determine whether a
foreign entity qualifes as a corporation or as a partnership from a
German perspective.
List of possible criteria determining a corporation or partnership
Criteria Corporation Partnership
Centralized management and Yes No
representation
Limited liability – none of the Yes No
members is personal liable
Free transferability of interests Yes (in general) No
Provision of capital Requirement to provide the No statutory requirement
company with capital
Profit distribution Determined by the par value Proportionate to contributions
of the stock
Formal requirements for Entry in the Commercial Entry in the Commercial
organization Register is required Register is not required
EU Forecast
euf:ba18f:67/nws-01