We offer only corporations with limited liability, called GmbH (Gesellschaft mit beschränkter Haftung).
A limited liability company (GmbH) is a commercial trading company with its own legal personality. It can be established for any lawful purpose. Its share capital is determined in its Articles and corresponds with the sum total of proprietors’ capital contributions. Only the company is liable to creditors for debts incurred by the company.
The Law on limited liability companies (GmbH-Gesetz) does not include a comprehensive and specific definition of this sort. It is assumed by the law.
A limited liability company (GmbH) is the simplest and cheapest form of capital-based company. The particular advantage of a limited liability company (GmbH) is the flexibility of this legal form. The Memorandum and Articles can be drafted in many different and flexible ways. A limited liability company (GmbH) is equally suitable for small companies, medium-sized family companies or even large companies.
Compared with a public limited company (AG), a limited liability company (GmbH) is subject to less severe regulations in some ways. Formation is less formal and is therefore simpler and cheaper. A one-person limited liability company is admissible too. In the case of „small“ limited liability companies a supervisory board is not required. Articles can basically be drafted at will and the law on limited liability companies offers greater flexibility than the law governing public limited companies (Aktien-Gesetz).
On the other hand a limited liability company (GmbH) is not a public company. There are no restrictions on a sale and this plus transfer of shares must be certified notarially. The Articles can make the sale and transfer of business shares dependent on other requirements, for example the approval of the proprietors.