It actually translates to "corporation with limited liability". This means (probably the same as
incorporated, but it's not explained there) that the people who have formed the corporation are liable for its actions
only with the money they explicitly put into it. So if the company racks up huge
debts or is sued for a large amount of money, they lose only their investments, not their entire private
fortune. Obviously, this means that it's much harder to get bank credits for a GmbH.