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Can a gmbh trade in shares to raise capital ?? please help quick if you have some knowledge of finance? |
I know AG is the one which can trade in shares but what about gmbh are they too allowed to trade in shares? I'm not an expert on how Germany regulates business entities, but I am familiar with how the American counterpart, limited liability companies (LLCs), work, so I can give you some information about that. LLCs in the US are generally sole proprietorships or partnerships whose owners want the limited liability benefit of corporations while retaining the tax benefits of uncorporated businesses, so capital from LLCs are usually contributed by the owners themselves, who then share in the profits and losses. LLCs can't raise capital by issuing shares because they are not public companies. They can't file with the SEC, and they cannot issue shares to the public. LLC owners' "partnership interests" can occasionally be transferred or purchased, but this is almost always done for reasons other than to raise capital. So, for LLCs in the US, the short answer is no. |
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