The full name of a limited company is a limited liability company.
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Shareholders are liable to the company to the extent of their capital contribution, and the company is liable to the debts of the company with all its assets. According to the Company Law, such companies must indicate the words "limited liability company" or "limited company" in the company name.
Compared with limited liability companies (including limited companies and joint-stock companies), an unlimited liability company means that shareholders bear unlimited joint and several liabilities for the company and its debts. In other words, if the company can't repay its debts, the shareholders should bear the responsibility for repayment. In China, it is not allowed to set up unlimited liability companies, but it is allowed to set up unlimited liability enterprises, such as sole proprietorships and partnerships. These enterprises are not independent legal persons, so they cannot become companies, and the owners of enterprises directly bear unlimited corporate responsibilities.