What is a non-profit limited liability company (gGmbH)?
A non-profit limited liability company (gemeinnützige GmbH, short gGmbH) is a special form of limited liability company that primarily pursues non-profit objectives, as opposed to profit-making goals. Unlike a conventional GmbH, whose main goal is profit generation, a gGmbH focuses on achieving charitable, social, cultural, scientific, or similar purposes.
The gGmbH must explicitly define charitable purposes in its articles of association. These purposes must meet the requirements of the tax code to be recognized as non-profit, which brings tax advantages such as exemptions from corporate and trade taxes.
Unlike a regular GmbH, the profits of a gGmbH cannot be distributed to its shareholders. Instead, they must be used for the statutory, non-profit purposes. This ensures that the profits generated benefit the public good.
The management of a gGmbH is subject to similar legal frameworks as a normal GmbH but must also ensure the adherence to the non-profit objectives. This requires transparent and responsible corporate governance.
A gGmbH can be active in various fields, such as education, environmental protection, culture, social services, or science. It represents an attractive legal form for organizations that wish to combine sustainable entrepreneurial commitment with non-profit goals.
See Wikipedia (German) for more details: Gemeinnützige GmbH
Goals of the Pioneers Hub non-profit GmbH
Pioneers Hub pursues tax-privileged objectives and supports the following purposes (according to the legal text):
- the promotion of science and research;
- the promotion of education, adult education and vocational training, including student support
- the promotion of gender equality
- the promotion of civic engagement for charitable purposes
Our organisation is non-denominational, neutral in terms of party politics and promotes the equal treatment of persons irrespective of the characteristics of gender, age, disability, sexual orientation, gender identity or sexual orientation specified in the General Equal Treatment Act (AGG).
Official Notification of Non-Profit Status
The non-profit status is issued by the tax office in Germany.
The original notification in German can be found here.
An automatic translation into English is available here.