Is it necessary to pay taxes when a limited liability company is changed into a joint stock limited company?

Legal analysis: When the whole limited liability company is changed into a joint stock limited company according to its net assets, individual shareholders should pay individual income tax according to law on the amount of share capital obtained by converting undistributed profits into share capital, but the company does not need to pay the shareholding fee.

Legal basis: Article 9 of the Company Law of People's Republic of China (PRC). Where a limited liability company is changed into a joint stock limited company, it shall meet the conditions of a joint stock limited company as stipulated in this Law. When a joint stock limited company is changed into a limited liability company, it shall meet the conditions of a limited liability company as stipulated in this Law. Where a limited liability company is changed into a joint stock limited company, or a joint stock limited company is changed into a limited liability company, the creditor's rights and debts before the company change shall be inherited by the changed company.