Limited liability companies, referred to as limited companies for short, include wholly state-owned companies and other limited liability companies. That is to say, among the limited liability companies, there are other limited liability companies besides the wholly state-owned companies.
A limited liability company is an economic organization established with the contribution of less than 50 shareholders. Each shareholder shall bear limited liability to the company to the extent of the subscribed capital contribution, and the company as a legal person shall bear full liability for the company's debts with all its assets.
Extended data:
Advantages of the company:
1. The limited liability of the shareholders of the company determines that the shareholders of the investment company can not only meet the needs of investors to seek benefits, but also limit the risks they bear to a reasonable range and increase their investment enthusiasm.
2. Companies, especially joint stock limited companies, can publicly issue stocks and bonds in the society, raise funds extensively, and facilitate the establishment of large enterprises.
3. The company implements the principle of complete separation of ownership and management rights, which improves the management level of the company.
4. The unique organizational structure of the company makes the company's capital and operation tend to maximize the benefits and better realize the investors' goals.
5. The corporate form is completely divorced from personal color and is a permanent combination of capital. The personal safety of shareholders does not affect the normal operation of the company.
Reference: Baidu Encyclopedia-Limited Liability Company