1. The difference between a company limited by shares and a limited liability company is as follows:
(1) Differences in the forms of equity expression. In a limited liability company, shareholders are liable to the company to the extent of their capital contribution. In a joint stock limited company, shareholders are liable to the company to the extent of their shares;
(2) The number of shareholders is different. A limited liability company shall be established by capital contribution of shareholders with less than 50 persons. A joint stock limited company shall have two or more promoters but not more than 200, and more than half of the promoters have domicile in China;
(3) Different ways of establishment. 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;
(4) The degree of standardization of organizational setup is different. A joint stock limited company must set up a board of directors and a board of supervisors, and a limited liability company may not;
(5) The equity transfer is different. Limited companies are relatively more restrictive, and other shareholders have the priority to transfer their shares under the same conditions. Shareholders of a joint stock limited company shall transfer their shares in a legally established securities exchange or in other ways prescribed by the State Council.
2. The relationship between a joint stock limited company and a limited liability company is as follows:
(1) Both are for-profit companies with legal personality, and both are equity-based economic consortia;
(2) Shareholders' liabilities to the Company are limited by the amount of capital contribution;
(3) Both of them are the main corporate forms in the modern enterprise system, and the company law has more normative requirements for these two forms.
Legal basis: Article 77 of the Company Law of People's Republic of China (PRC).
The establishment of a joint stock limited company can be initiated or raised.
A promoter refers to a company established by the promoters who subscribe for all the shares that should be issued by the company.
The establishment by public offering means that the promoters subscribe for part of the shares that should be issued by the company and raise the remaining shares to the public or specific objects to establish the company.