Die UG (haftungsbeschränkt) & Co. KG

The author analyses both legal and practical aspects of the UG & Co. KG. Being typically a rather weakly-capitalized company, the use of a Unternehmergesellschaft (UG) as general partner of a limited partnership raises concerns whether such enterprise may be a feasible alternative for the common GmbH & Co. KG. By analyzing mainly the obligation of retention set forth in Section 5a para 3 of the Limity Liability Company Act (GmbHG), the author shows how creditors may be protected even when doing business with a UG & Co. KG.