Double company

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A double company is created by dividing a company into two or more legally independent companies , which are usually linked by common shareholders. A typical case of a double company is the split of operations . The double company is not a legal form .

The sense and purpose of a dual company can be tax aspects, liability issues as well as risk limitation and asset protection also play a role.

A double company is often legally divided into a partnership and a corporation . One company can serve as a production company and the other as a sales company. In the case of a business split, one serves as the holding company and the other as the operating company. In contrast to the GmbH & Co. KG, there are no participation relationships between the two companies .

The GmbH & Co. KG, which is widely used as a hybrid of two company forms, does not belong to the double companies. Rather, it is a legal unit, namely a limited partnership (partnership) that is run by a GmbH (corporation).