What is a shareholder company?

Legal analysis: A limited liability company refers to a company established with the capital contribution of shareholders, who are limited in liability for the debts of the company to the extent of their capital contribution, and the company is jointly and severally liable for its debts with all its assets. Limited liability companies include one-person limited liability companies and wholly state-owned companies. A joint stock limited company refers to a company whose capital consists of shares, and whose shareholders are limited to the shares subscribed by them, and are jointly liable for debts with all their assets. A company limited by shares includes a listed company.

Shareholders include limited liability companies and joint stock limited companies. However, the two companies have different requirements for the number of shareholders: a limited liability company consists of less than 50 shareholders, or a limited liability company can be established by one person; A joint stock limited company is composed of two or more people but not more than 200 people, and cannot be composed of one person.

Legal basis: Article 3 of People's Republic of China (PRC) Company Law is an enterprise legal person with independent legal person property and legal person property rights. The company is liable for its debts with all its property. Shareholders of a limited liability company shall be liable to the company to the extent of their subscribed capital contribution; Shareholders of a joint stock limited company shall be liable to the company to the extent of the shares subscribed by them.

Article 24 A limited liability company shall be established by capital contribution of shareholders with less than 50 persons.

Article 78 To establish a joint stock limited company, there shall be two or more promoters, more than half of whom shall have their domicile in China.