The difference between a company and a limited company

1. Different definitions: limited liability company: shareholders are liable to the company to the extent of capital contribution, and the company is liable to the company's debts with all its assets. An unlimited liability company consists of two or more shareholders, who are jointly and severally liable for the debts of the company. 2. Different responsibilities: each shareholder of a limited liability company shall bear limited liability to the company to the extent of the capital contribution subscribed by him. Unlimited liability company means that shareholders bear unlimited joint and several liability for the company and its debts. If the company is unable to pay off its debts, the shareholders shall bear the responsibility for paying off. In China, it is not allowed to set up unlimited liability companies, but it is allowed to set up unlimited liability enterprises, such as sole proprietorships and partnerships. 3. Different operating characteristics: Unlimited liability company is several small * * same enterprise forms based on mutual trust among its members, and its organizational procedures are relatively simple, and it does not require the minimum total capital, which is directly related to all the property interests of shareholders; Therefore, the shareholders' meeting will work together and have a close relationship with shareholders. The establishment procedure of a limited liability company is relatively simple, and there is no need to issue announcements or accounts. In particular, the company's balance sheet is generally not open, and the company's internal institutions are flexible. Its disadvantage is that the scope and scale of funds raised are generally relatively small because it is impossible to issue shares publicly.