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. Ltd. (Limited)

    An abbreviation of "limited," Ltd. is a suffix that ...
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. Investing Basics

    Economic Indicators for Germany

    Here is a list of the top macro-economic indicator data sources for Germany.
  5. Investing Basics

    Enterprise Resource Planning System: A How To

    An ERP system won’t transform poor management into good management, but the real-time business analytics can help make good management even better.
  6. Economics

    How did World War II impact European GDP?

    Understand the effect of World War II on the European gross domestic product and what foreign and domestic factors influenced this change.
  7. Investing Basics

    Using Appreciative Inquiry To Solve Management Problems

    In its purest form, appreciative inquiry is a powerful tool for shifting the focus of an organization to something much greater than its bottom line - although the eventual outcome will often ...
  8. Investing News

    Starbucks As An Example Of The Value Chain Model

    Management consulting guru Micahel Porter developed the value chain model in 1985; here's how it works, using a well-known real live case study: Starbucks.
  9. Savings

    5 Smart Money Strategies From Around The World

    Around the globe, the way money is thought about, handled, saved and spent varies greatly from what might be the norm in the U.S.
  10. You may not know it, but you probably depend on a Qualcomm product just about every day. Here's how.
    Stock Analysis

    How You Depend On Qualcomm Every Day

    You may not know it, but you probably depend on a Qualcomm product just about every day. Here's how.

You May Also Like

Hot Definitions
  1. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  2. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  3. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
  4. Special Administrative Region - SAR

    Unique geographical areas with a high degree of autonomy set up by the People's Republic of China. The Special Administrative ...
  5. Annual Percentage Rate - APR

    The annual rate that is charged for borrowing (or made by investing), expressed as a single percentage number that represents ...
  6. Free Carrier - FCA

    A trade term requiring the seller to deliver goods to a named airport, terminal, or other place where the carrier operates. ...
Trading Center