The legal structure and organization of a company or institution as defined by law (e.g., GmbH, AG, registered association). The legal form determines, among other things, liability and tax matters.
example
Vor der Gründung müssen sich die Gesellschafter für eine geeignete Rechtsform entscheiden.
Before founding the company, the partners must decide on a suitable legal form.
Usage tips
Compound word
'Rechtsform' (legal form) is a compound noun made from 'das Recht' (law/right) and 'die Form' (form), connected by an 's'. It literally means the 'form prescribed by law', that is, the legal structure of a company.
EXAMPLE
Die Wahl der Rechtsform hat wichtige rechtliche Konsequenzen.
The choice of legal form has important legal consequences.
Register: technical language
This word is a technical term from the fields of business and law. It is used when talking about the founding, organization, or structure of companies, associations, and other organizations.
EXAMPLE
Im Handelsregister ist die Rechtsform jedes Unternehmens verzeichnet.
The legal form of every company is recorded in the commercial register.
Typical verbs
In the context of starting a company, 'Rechtsform' (legal form) is often combined with certain verbs. Typical phrases are: 'eine Rechtsform wählen' (to choose a legal form), 'sich für eine Rechtsform entscheiden' (to decide on a legal form), or 'die Rechtsform ändern' (to change the legal form).
EXAMPLE
Die Gründer müssen sich noch für eine Rechtsform entscheiden.
The founders still have to decide on a legal form.