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

Limited company and limited liability company are two different types of companies. The following are their differences:

1. Different company names: Limited companies can use "limited company" or "limited liability company" in their company names, while limited liability companies can only use "limited liability company".

2. The number of shareholders is different: the minimum number of shareholders of a limited liability company is 2, while a limited liability company only needs 1, which means that a limited liability company can only have one shareholder.

3. Different shareholders' responsibilities: the shareholders' responsibilities of a limited company are limited, that is, shareholders only need to bear the responsibility of their capital contribution; The shareholders' liability of a limited liability company is also limited, but when the company goes bankrupt, the shareholders need to bear all the responsibilities of the shares they hold.

4. Different registered capital: there is no minimum requirement for the registered capital of a limited company, while the minimum registered capital of a limited liability company needs to reach 6,543,800 yuan.

5. Different types of companies: Limited companies are independent legal entities, and limited liability companies are investment enterprises engaged in business activities in the name of companies.

To sum up, there are differences between the two types of companies in terms of the number of shareholders, shareholder responsibilities and registered capital. Choosing the right company type needs to consider its own actual situation and needs.

When choosing to set up a limited company and a limited liability company, we should comprehensively consider their characteristics, advantages and disadvantages, so as to make the most suitable decision for ourselves.

1. The biggest difference between a limited company and a limited liability company lies in the different responsibilities of the company's shareholders. In a limited company, the liability of shareholders is limited to the shares they subscribe for, and they do not bear the debt risk of the company. In a limited liability company, the liability of shareholders is also limited, but compared with a limited company, the shareholders of a limited liability company enjoy a higher degree of protection when the company encounters debt risks.

2. In addition, the registered capital and the number of shareholders required for the establishment of a limited liability company are usually less than those of a limited company, and the limited liability company is usually more flexible and can respond to changes in enterprise development more quickly.

However, when choosing which type of company to set up, we also need to consider its shortcomings. Limited liability companies may face higher tax pressure and management costs, while limited liability companies may be subject to disputes and disputes among shareholders.

To sum up, which type of company to choose should be weighed according to the actual situation, business objectives and legal provisions of the enterprise, and should not be blindly chosen.