GbR
A GbR (Gesellschaft bürgerlichen Rechts) is the German civil-law partnership - the simplest way for two or more people to run a business together, with no minimum capital but full personal liability of the partners.
A GbR forms automatically when partners pursue a common purpose; it needs no registration in the Handelsregister and no minimum capital. The flip side is that the partners are personally and jointly liable for the partnership's debts with their private assets. It is common among freelancers, small trades, and joint ventures, and is roughly comparable to a US general partnership (GP).
Related providers: Legal & Notary
See also: GmbH, Einzelunternehmen (sole proprietorship)
Frequently asked questions
- Does a GbR protect me from personal liability?
- No. Unlike a GmbH or UG, a GbR gives no liability shield - each partner is personally liable for the partnership's obligations. Founders who want limited liability usually choose a GmbH or UG instead.
- Does a GbR need to be registered?
- A classic GbR needs no commercial-register entry, though since 2024 partnerships can opt into a new company register (Gesellschaftsregister) to become an "eGbR". A trade licence (Gewerbeanmeldung) is still required for commercial activity.