1E9Ct5D

7. The Advantages of a Partnership compared to a corporate structureThe following points are usually invoked concerning the advantages of a partnership andshould therefore be taken into consideration when choosing a specific form of businessentity.A partnership distinguishes itself due to:• the direct management by the general partners• the fewer publication requirements• the easy way of dissolving a partnership and distributing its capital to the partners• the greater flexibility in adapting the internal affairs to the partner’s needs.• beneficial gift and tax treatment8. OtheroBranchCarrying on business in Germany by registering as a branch is especially suitable forcompanies not yet sure about the sustainability of their commitment in Germany. Thebranch has to be registered with the Commercial Register and the Trade office.However, a branch has no legal entity status within Germany. This leads to the result thatthe branch is regarded as an integral part of a foreign company. The foreign company istherefore still liable for all commitments and debts arising from the branch’s business operations.Nevertheless, it must be taken in consideration that a branch establishes jurisdictionfor the respective company in Germany.oSole TradershipEspecially for individuals the sole trader (Einzelkaufmann) represents the easiest way ofstarting a business in Germany. The registration with the Commercial Register and a notificationto the local trade office (Gewerbeamt) are the only requirements for startingsuch a business (unless a special regulated business is carried out). However, in someindustries special approvals and permissions are compulsory. Furthermore, the soletrader is also the sole proprietor of all assets. He or she is therefore personally liable forall liabilities and debts arising from the business.23