A GmbH (which stands for “Gesellschaft mit beschränkter Haftung”) is the most popular limited liability company under German law and can easily be incorporated. The limitation of liability allows you to protect your private estate from any liabilities resulting from the business activites.

In the heart of Europe – at the crossroads of East and West Europe – Germany attracts companies with its strong sales markets, well-trained specialists and a modern infrastructure. Many start-ups therefore decide to locate their business in Germany or at least open a branch office in Germany. Even within the EU, where many laws have been harmonized over the years, there are astonishing differences on the labour law field and if done wrong labour law can be an expensive source of conflict for a company. Therefore, especially start-ups are well advised to become aware of basic principles of German labour law.