Offene Handelsgesellschaft (OHG)
General commercial partnership
The OHG (‘Offene Handelsgesellschaft’) is the most simple form of a partnership whereby each partner is unlimited liable with the contribution as well as private property for the debts of the company.
There is a transparent taxation of the partnership which means that taxes are levied on level of the partners (income tax and solidary surcharge). The income of OHGs is taxed with the individual tax rate of each partner. However trade tax is levied on level of the partnership. Please note that the trade tax is partly or fully credible (up to a maximum amount) on the individual income tax. This rule is to avoid double taxation of income with trade tax and income tax.