GmbH

AAA

DEFINITION of 'GmbH'

GmbH is an abbreviation of the German phrase Gesellschaft mit beschränkter Haftung, which means "company with limited liability." It's a suffix used after a private limited company's name in Germany (versus AG, which is used to indicate a public limited company). GmbH is an equivalent of an English Ltd., and is the most common form of incorporation in Germany.

INVESTOPEDIA EXPLAINS 'GmbH'

A limited company is one where the shareholders' liability is limited to the amount of their original investment, and the shareholders are not responsible for the company's debts, protecting their personal assets in the event that the company becomes insolvent. The difference between a private limited company and a public limited company is that the shares in a private limited company are not offered to the general public and not traded on a public stock exchange. (For more, see: What is the full phrase for 'GmbH', and what do the words in this acronym mean in English?.)

RELATED TERMS
  1. Cash Bonus

    A lump sum of money awarded to an employee, either occasionally ...
  2. Kickback

    The payment of something of value to an individual with the goal ...
  3. Strategic Management

    The management of an organization’s resources in order to achieve ...
  4. Performance Management

    The management of employees, departments, and organizations to ...
  5. Peter Pan Syndrome

    A regulatory environment in which firms prefer to stay small ...
  6. AG (Aktiengesellschaft)

    AG is an abbreviation of Aktiengesellschaft, which is a German ...
Related Articles
  1. Economics

    Should Germany Leave The Eurozone?

    Germany may be better off leaving the eurozone behind, instead of continously propping up struggling economies with little return.
  2. Economics

    Why Germany Is The Economic Powerhouse Of The Eurozone

    There's little denying that Germany is the boss of the eurozone. Discover what sets it apart from the rest of Europe.
  3. Investing

    What is the full phrase for 'GmbH', and what do the words in this acronym mean in English?

    In Germany, there are two types of companies: publicly traded and privately held. The acronym 'GmbH', which is written after the name of the company, designates a company as private in Germany. ...
  4. Stock Analysis

    How CVS Grew Into a Drugstore Giant

    Want proof that brick-and-mortar businesses aren't dead? Just look at this company.
  5. Economics

    Corporate Tax Inversion

    U.S. companies like Burger King use corporate tax inversion to take advantage of lower taxes abroad.
  6. Taxes

    What is Value-Added Tax (VAT) and who pays it?

    Learn about the definition of value-added tax, the necessary circumstances that require a business to pay it and when a business is exempt.
  7. Economics

    Which country has the most gold?

    Learn which countries hold the most in gold reserves, and explore the reasons holding gold may be beneficial to a country's economy.
  8. Investing Basics

    What are key points to a good corporate social responsibility policy?

    Learn the main components of a good corporate social responsibility policy, including communication with stakeholders, partnerships and measurement tools.
  9. Personal Finance

    What are the top trends in corporate social responsibility?

    Learn about top trends in corporate social responsibility. Companies are increasing transparency, innovating, investing locally and addressing inequalities.
  10. Entrepreneurship

    How does a customer base dictate goodwill?

    Find out how a customer base dictates the value of the goodwill by providing a ready market for its products and spreading the word about the firm.

You May Also Like

Hot Definitions
  1. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  2. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  3. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  4. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
  5. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be ...
  6. Break-Even Analysis

    An analysis to determine the point at which revenue received equals the costs associated with receiving the revenue. Break-even ...
Trading Center