In a limited liability company, shareholders are liable to the company to the extent of their capital contribution, and the company is liable to its debts with all its assets.
In a joint stock limited company, all its capital is divided into equal shares, shareholders are liable to the company to the extent of their shares, and the company is liable to the company's debts with all its assets.
2. Limit on the number of shareholders
A limited liability company shall be established by capital contribution of shareholders with less than 50 persons.
The establishment of a joint stock limited company shall have two or more promoters, of whom more than half of the promoters shall have their domicile in China.
3. Differences in preparation methods and processes:
Limited liability companies can only raise funds from sponsors, and joint stock limited companies can raise funds from the society.
Where a joint stock limited company is established by offering, the shares subscribed by the promoters shall not be less than 35% of the total shares of the company.
limited liability company
Limited company, referred to as China Limited Liability Company for short, refers to an economic organization registered in accordance with the Regulations of the People's Republic of China on the Administration of Company Registration, and established with the contribution of less than 50 shareholders. Each shareholder shall bear limited liability to the company to the extent of the subscribed capital contribution, and the company as a legal person shall bear full liability for the company's debts with all its assets. Limited liability companies include wholly state-owned companies and other limited liability companies.
joint-stock company
It refers to a form of enterprise organization in which three or more stakeholders (at least three) voluntarily combine in the form of joint-stock operation. It is an enterprise organization form that adapts to the needs of socialized mass production and market economy development, realizes the relative separation of ownership and management rights, and is conducive to strengthening enterprise management functions.
The characteristics of joint-stock enterprises are mainly:
(1) Issue shares as a voucher for shareholders to buy shares, on the one hand, get dividends, on the other hand, participate in the operation and management of enterprises;
(2) Establish the internal organizational structure of the enterprise. The shareholders' meeting is the highest authority of joint-stock enterprises, the board of directors is the permanent body of the highest authority, and the general manager presides over daily production and business activities;
(3) With the assumption of risk responsibility, the ownership income of joint-stock enterprises is scattered, and the operating risks are shared by many shareholders;
(4) It has a strong dynamic mechanism, and many shareholders care about the operation of enterprise assets from the perspective of interests, which makes the major decisions of enterprises tend to be optimized, and the development of enterprises can be based on the interest mechanism.