GAV, also known as Gesellschaft mit beschränkter Haftung in German, is a term used to refer to a specific type of legal entity or company commonly found in German-speaking countries, specifically Germany, Austria, and Switzerland. Its English translation is "company with limited liability."
GAV is a well-established legal structure that is widely used by various businesses, ranging from small startups to larger corporations. It is considered to be a legal form of a private limited liability company, similar to the concept of a limited liability company (LLC) in other countries.
The main characteristic of a GAV is that the company's liability is limited to the extent of its capital investment. This means that the company's shareholders, also known as members, are not personally liable for the company's debts or obligations beyond the amount they have invested in the company. This limited liability protection offers a significant advantage for shareholders, as it helps protect their personal assets from potential business risks and liabilities.
GAVs are typically governed by specific legal provisions and regulations, which define the company's structure, management, and operation. They are required to register with the respective commercial register in their jurisdiction and comply with various legal requirements, such as preparing and submitting financial statements and fulfilling tax obligations.
Overall, GAVs offer a flexible and effective legal framework for businesses to operate and conduct business activities while providing limited liability protection for their shareholders.
