GmbH

GmbH is the abbreviation for limited liability company, this is a trading company. This form of trading company has its own legal personality and is established with a certain amount of capital. The share capital of a GmbH in Germany is €25,000. This share capital is provided by contributions from the shareholders, at least €100 per shareholder applies.

A GmbH is founded by at least one person who concludes a partnership agreement in a notarial deed and takes over the capital contributions. By entering the GmbH in the commercial register, it acquires legal capacity.

In the case of a GmbH with more than 500 employees, a supervisory board is required, which serves to monitor the management. The managing director is appointed either by a resolution of the shareholders` meeting or by a shareholders` agreement. This can be revoked at any time, but usually not without an important reason. The appointed management has unrestricted powers of representation to the outside world. Only the shareholder`s assets are liable for liabilities.