There are two forms of statutory companies in China, namely, limited liability companies and joint stock companies.
Share-holding system, also known as "share economy", refers to an economic organization form in which scattered factors of production belonging to different people are centralized, used uniformly, managed rationally, self-financed, and paid dividends by shares. It is also a form of enterprise property ownership.
Limited liability company, also known as limited company (CO, LTD). A limited liability company 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 with the amount of capital contribution subscribed by him, and the company shall bear liability for its debts with all its assets. Limited liability companies include wholly state-owned companies and other limited liability companies.