Gesellschaft mit beschränkter Haftung

In Switzerland, the German term Gesellschaft mit beschränkter Haftung (GmbH) refers to a company which is privately owned by one or more individuals who benefit from limited liability.

This business classification is similar to the limited liability company (Ltd) classification in the U.K. and the limited liability company (llc) classification in the U.S.

A GmbH is a legal entity and must be entered into a commercial register. The company is divided into a fixed number of ownership shares at the time of its founding. The liability of owners is limited.

Profits earned by a GmbH must be taxed, and owners pay income tax on income derived from ownership of a GmbH.

Opening a GmbH in Switzerland requires a minimum of 20,000 Swiss francs in capital.

More on this topic:
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Daniel Dreier is editor and personal finance expert at moneyland.ch.

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