What's the difference between a limited company and a partnership?

The difference between a limited company and a partnership enterprise is that a limited company is a legal person organization and a partnership enterprise is a non-legal person organization; The shareholders of a limited company bear limited liability, while in a partnership, the general partner bears unlimited liability for the debts of the company.

legal ground

Article 3 of People's Republic of China (PRC) Company Law

The company 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 2 of the Partnership Enterprise Law of People's Republic of China (PRC)

The term "partnership enterprise" as mentioned in this Law refers to the general partnership enterprise and limited partnership enterprise established in China by natural persons, legal persons and other organizations in accordance with this Law. A general partnership consists of general partners, who are jointly and severally liable for the debts of the partnership. Where this Law has special provisions on the liability form of general partners, such provisions shall prevail. Limited partnership consists of general partner and limited partner. The general partner shall be jointly and severally liable for the debts of the partnership, and the limited partner shall be liable for the debts of the partnership to the extent of the capital contribution subscribed.