GmbH
A GmbH (Gesellschaft mit beschränkter Haftung) is the German private limited liability company - the most common legal form for German businesses, broadly comparable to a US LLC.
A GmbH is a separate legal entity whose owners (Gesellschafter) are liable only up to their capital contribution, not with their personal assets. It requires a minimum share capital of EUR 25,000 (at least half paid in at formation) and registration in the Handelsregister (commercial register). A GmbH is managed by one or more Geschäftsführer (managing directors).
When a German GmbH expands to the United States it does not operate as a GmbH there; it typically forms a US subsidiary (most often an LLC or a corporation) or registers a branch. The GmbH abbreviation appearing in a US-facing company name usually signals German ownership of the US entity.
Related providers: Legal & Notary
See also: UG (haftungsbeschränkt), AG, LLC vs GmbH
Frequently asked questions
- Is a GmbH the same as an LLC?
- They are comparable but not identical. Both give limited liability, but a GmbH is a capital company with a EUR 25,000 minimum capital and notarized formation, while a US LLC is more flexible, has no minimum capital, and is taxed differently (often pass-through). A German GmbH entering the US usually forms a separate US LLC or corporation.
- What does "GmbH" after a company name mean?
- It identifies the company as a German limited liability company. On this directory, a US business carrying a GmbH parent or a GmbH in its name is typically a US subsidiary or affiliate of a German company.