In essence, a company limited by shares is just a special limited liability company. Due to the law, a limited liability company can only have less than 50 shareholders, which limits the company's ability to raise funds. However, the joint stock limited company has overcome this drawback, and can attract a large number of investors, especially small investors, by decomposing the registered capital of the whole company into small-value stocks.
Matters needing attention in joint-stock enterprises
In China, there are two ways to set up a joint-stock company. The first form is initiated establishment, also known as one-time establishment or simultaneous establishment, that is, all the initial shares of the company are subscribed by the promoters themselves and are not publicly issued; The second form is established by public offering, also known as gradual establishment, that is, the promoters only subscribe for part of the shares issued by the company for the first time, and the remaining shares are publicly offered to the public and subscribed by the public. The procedure of setting up an IPO is very complicated.
According to Article 8 1 of the Company Law, the capital contribution can be paid in installments. Article 81 stipulates that if a joint stock limited company is established by means of sponsorship, the registered capital shall be the total share capital subscribed by all promoters registered in the company registration authority. The initial investment of all promoters of the company shall not be less than 20% of the registered capital, and the rest shall be fully paid by the promoters within two years from the date of establishment of the company.
Refer to the above? Baidu encyclopedia-joint-stock enterprise