GmbH stands for “Gesellschaft mit beschränkter Haftung” (limited liability company). This means the financial risk is limited. Provided the required capital contribution of at least EUR 25,000 has been paid, only the GmbH, and not the shareholder or the managing director is personally liable for the debts. If the company ever gets into difficulties, creditors cannot access the personal funds of the entrepreneur. In this respect, the GmbH works like a protective shield for the entrepreneur.
At the same time, it is well respected by customers and business partners. A GmbH can be established easily and quickly.
The GmbH offers many advantages. However, we believe that the eight aspects listed on the left/on the right are sufficient for showing clearly that, in today’s legal world, setting up as a GmbH is essential for people who are self-employed.
Nicole Mutschke
Lawyer specialising in banking and capital markets law
Henning Linnenberg
Lawyer specialising in banking and capital markets law
Claudia Halstenberg
Lawyer specialising in banking and capital markets law