How to found a KG (Kommanditgesellschaft) in Austria
Limited partnership — one general partner with full liability, one or more limited partners.
This full guide to How to found a KG (Kommanditgesellschaft) in Austria is part of our premium area. You get step-by-step instructions, checklists, fee breakdowns, authority paths and practical tips for foreign founders.
Quick overview:
| Minimum capital | 0 € |
| Minimum founders | 2 (1 Komplementär + 1 Kommanditist) |
| Liability | general partner unlimited, limited partner capped at contribution |
| Accounting | cash basis up to €700k, double-entry above |
| Taxation | Income tax (0–55%) |
| Commercial register | mandatory |
| Notary required | no (recommended for the contract) |
| Time to set up | 1–2 w |
The Kommanditgesellschaft (KG) is a partnership with two roles: the Komplementär bears unlimited personal liability, while the Kommanditist is liable only up to an agreed capital contribution. Useful to bring in silent investors.
| Minimum capital | 0 € |
| Minimum founders | 2 (1 Komplementär + 1 Kommanditist) |
| Liability | general partner unlimited, limited partner capped at contribution |
| Accounting | cash basis up to €700k, double-entry above |
| Taxation | Income tax (0–55%) |
| Commercial register | mandatory |
| Notary required | no (recommended for the contract) |
| Time to set up | 1–2 w |
When does this form make sense?
The KG is the right choice when you want to attract investors (Kommanditisten) who contribute capital without taking on unlimited risk. A popular variant is the GmbH & Co KG, where a GmbH acts as the general partner — this effectively limits liability to the GmbH capital.
Less suitable for very small solo ventures; for those the Einzelunternehmen is simpler and cheaper.
Required documents
- Passports/IDs and registration certificates of all partners
- Written partnership agreement
- Notarised signatures
- Qualification certificate for regulated trades
- Proof of business address
- If GmbH & Co KG: articles of association of the GmbH general partner
Founding steps
- Draft the partnership agreement — define general/limited partners, capital contributions, management.
- Notarise signatures of all partners.
- File with the commercial register (Firmenbuch) at the competent court.
- Register the trade (Gewerbeanmeldung).
- SVS registration for general partners; limited partners normally not subject to SVS.
- Tax office registration.
- Open a business account in the KG name.
Costs
- Firmenbuch entry: 150–350 €
- Notary (signatures): 100–200 €
- Lawyer for partnership agreement: 500–2,000 €
- If GmbH & Co KG: additional GmbH setup costs (1,500–3,000 €)
- WKO membership fee: 50–250 € per year
Plain KG: 700–2,500 €. GmbH & Co KG: 2,500–6,000 €.
Taxes & social insurance
- Profits of the KG are taxed personally by each partner at progressive income tax rates.
- General partners pay SVS contributions on their share.
- Limited partners usually not in SVS — but must include the share in their personal income tax return.
- VAT: standard 20 %, standard rules apply.
- Above 700,000 € turnover: full bookkeeping obligation.
- Limited partners take limited risk
- Clear separation between active management and capital providers
- Flexible design of profit distribution and reporting rights
- GmbH & Co KG combines limited liability with partnership taxation
- General partner still bears unlimited liability
- More complex than an OG (two partner categories)
- Mandatory commercial register filing
- Agreement drafting is legally demanding
Common mistakes
- Registering as a KG when a simple OG would do — unnecessary complexity.
- No formal limitation of the limited partner's contribution — treated as unlimited liability in case of doubt.
- Forgetting SVS registration for the general partner.
- Sloppy partnership agreement — endless conflict over voting rights.
Sources
This website is a private information portal and does not constitute legal advice.