Setting Up a Limited Partnership

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Setting up a k.s. – limited partnership

A limited partnership (k.s.) is a partnership that brings together capable entrepreneurs acting as general partners with passive partners or investors – the limited partners – who do not wish to take part in running the business. General partners have unlimited liability for the partnership’s obligations, i.e. with all their personal assets, and their share of the profits is not taxed at partnership level but is simply included in each general partner’s personal tax return. Limited partners are liable only up to the amount of their unpaid capital contribution, i.e. they are not liable for the partnership’s debts and obligations; however, their share of the profits is taxed at partnership level and, where tax on dividends and profit shares applies, also at their personal level – meaning double taxation, although this second layer of tax does not always arise, namely when tax on dividends and profit shares is not applied.

A limited partnership offers several advantages:

• the share of profits attributable to limited partners is taxed at partnership level, while the share attributable to general partners is not taxed at the level of the limited partnership,
• only general partners may manage and represent the limited partnership,
• each limited partner must contribute at least 250 EUR, although we can help you arrange the contribution so that you do not have to pay it in cash,
• general partners are under no statutory obligation to make a contribution,
• both individuals and legal entities may be partners,
• setting up the company is usually quick (often 9 – 14 working days).

The limited partnership – further features:

• a limited partnership cannot be founded by a single individual or a single legal entity; it must always have at least two partners.

Our limited partnership formation service includes:

• once payment is received, an initial consultation in person or by telephone covering every step involved in setting up the company. Our specialists will answer any questions you have, point out possible alternatives and help you choose the most cost-effective and time-efficient solution,
• preparation of all the documents you need,
• full handling of the trade licences,
• drafting and filing the application for entry of the company in the Slovak Commercial Register,
• payment of ALL court and administrative fees, so after a single payment there are no further costs,
• guidance on paying notarial fees,

What must the business name of a limited partnership contain? The business name of a limited partnership must include the designation komanditná spoločnosť or the abbreviation „kom.spol.“ or „k.s.“. If a limited partner’s name appears in the business name, that partner bears unlimited liability for the partnership’s obligations, even though they do not otherwise acquire the rights of a general partner. The best-known limited partnerships include: AHOLD Retail Slovakia, k.s.