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Gesellschaft mit beschränkter Haftung (German: [ɡəˈzɛlʃaft mɪt bəˌʃʁɛŋktɐ ˈhaftʊŋ]), literally 'company with limited liability' (abbreviated as GmbH [ɡeːʔɛmbeːˈhaː] in Germany, Switzerland and Liechtenstein, and as Ges.m.b.H. in Austria), is a type of legal entity in German-speaking countries. It is equivalent to a société à responsabilité limitée (Sàrl) in the French-speaking part of Switzerland and to a Società a Garanzia Limitata (Sagl) in the Italian-speaking part.
It is an entity broadly equivalent to the private limited company in the United Kingdom and many Commonwealth countries, and the limited liability company (LLC) in the United States. The name of the GmbH form emphasizes that the owners (Gesellschafter, also known as members) of the entity are not personally liable for the company's debts.[1][2] GmbHs are considered legal persons under German, Swiss and Austrian law. Other variations include mbH (used when the term Gesellschaft is part of the company name itself), and gGmbH (gemeinnützige GmbH) for non-profit companies.
The GmbH has become the most common corporation form in Germany because the AG (Aktiengesellschaft), the other major company form corresponding to a stock corporation, was much more complicated to form and operate until recently.[when?][3][4]
- ^ RIS – Bundesrecht konsolidiert – Suche Archived 19 March 2021 at the Wayback Machine. Ris.bka.gv.at. Retrieved on 19 July 2013.
- ^ GmbHG – nichtamtliches Inhaltsverzeichnis Archived 31 August 2011 at the Wayback Machine. Bundesrecht.juris.de. Retrieved on 19 July 2013.
- ^ Müller, Klaus J. The GmbH: a guide to the German limited liability company Archived 16 August 2023 at the Wayback Machine Beck, 2006 ISBN 978-90-411-2444-9
- ^ GTAI. "Limited Liability Company (GmbH) – Investment Guide to Germany". Archived from the original on 4 March 2021. Retrieved 5 March 2020.