# GMBH

/ˈdʒiˈɛmˈbiˈeɪtʃ/ (US) · CEFR C1 · Noun

Source: https://englishreference.com/word/gmbh
Updated: 2026-05-10

## Definition

Stands for Gesellschaft mit beschränkter Haftung. A type of private company in German-speaking countries where the owners are not personally responsible for the company's debts. It is similar to a 'Limited' or 'Ltd' company in the UK.

For teachers: Abbreviation for Gesellschaft mit beschränkter Haftung. A legal entity in Germany, Austria, and Switzerland where shareholder liability is restricted to their capital contribution. It typically follows the company name as a legal suffix.

## Examples

- The contract was signed by the director of the GmbH.
- Many small and medium-sized family businesses in Germany are registered as a GmbH to protect their personal assets.
- The transition from a sole proprietorship to a GmbH allows the founder to limit personal liability while establishing a more formal corporate structure for potential investors.

## Usage notes

- Usually written in capital letters; functions as a post-nominal legal designation.

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