Legal analysis: a limited liability company belongs to an enterprise. The nature of individual industrial and commercial households is private non-enterprise type. Limited companies must have their own fixed business premises and employees, and there are no restrictions on individual industrial and commercial households. Individual industrial and commercial households engaged in passenger and cargo transportation, trafficking, setting up stalls and mobile services do not need fixed business premises. The investors of the two companies are different. The investment subject of a limited company is a legal person, and the investment subject of individual industrial and commercial households can only be a natural person.
Legal basis: Article 23 of the Company Law of People's Republic of China (PRC) shall meet the following conditions for establishing a limited liability company:
(1) Shareholders meet the quorum;
(2) The capital contribution of shareholders reaches the minimum statutory capital;
(3) Shareholders * * * agree to formulate the Articles of Association;
(4) Having a company name and establishing an organization meeting the requirements of a limited liability company;
(5) Having a company domicile.