The GmbH is a commercial company with koerperschaftlicher organization and own juridical personality. It can be established for each permissible purpose. It has a capital stock determined by the statute, which corresponds to the sum from the partners to carrying out investments. For company debts only the society is responsible to the creditors.

A such recapitulatory definition contains the GmbH law not expressly. It is subordinated by the law. The right of the GmbH is codified in the "law concerning the limited companies" (GmbH law) of 20.5.1898 (with various changes until today).

The GmbH is the simplest and to few complex form of a finance company. The special preference/advantage of the GmbH exists in the flexibility of this legal form. It prevails large liberality in the organization of the articles of association. The GmbH is suitable equally for small enterprises, middle family companies or also large-scale enterprises.

In the comparison to the corporation the GmbH is subject partially less regulations. The establishment takes place less formalized and is therefore simpler and cheaper. Also an establishment of one-man is permissible. A supervisory board is not necessary at a "small" GmbH. The statute is to a large extent freely assignable, the GmbH right permitted to the larger extent than the law governing share transactions organization liberties.

On the other side the GmbH is not a public company. The unrestrictedly possible sales and the transmission of the business shares must be notarially recorded. The transferability of business shares can be made dependent however by the statute to further conditions, e.g. the agreement of the partners.

The GmbH is a finance company, i.e. differently than at the unincorporated firms stands not the union of persons, but bringing in of capital contributions in the foreground. In relation to the corporation it is however out-arranged more personnelistic. The minimum capital amounts to 25,000 euro.

The GmbH is its own legal entity. It is koerperschaftlich organized, independently of the member existence and has an organization with at least two verselbstaendigten organs, that or the managing directors and the company meeting. The order of a supervisory board is permissible, but not in every case necessary.

The partners are not buyers. The adhesion of the partners opposite creditors is limited to the capital stock of the society. From this the additive explains itself "with limited liability". The partners cling not personally opposite the creditors, if the investment is fully furnished. If the investment is not yet furnished, the partners up to the height of the investment cling.