The definition of limited liability company is more extensive, which refers to a form of company organization in which shareholders bear limited liability for the company's debts, that is, shareholders only need to bear the debt liabilities corresponding to the shares they hold, and do not have to bear all the debts of the company. Private limited liability company is a specific form of limited liability company, especially a company established and operated by private investors (natural persons or private enterprises).
First, the basic concept of limited liability company
Limited liability company is an important form of company organization, its main feature is that shareholders' commitment to the company's debts is limited, that is, shareholders only need to bear the company's debt liability in proportion to their shares. This organizational form is conducive to encouraging investment, promoting the development of enterprises and protecting the personal and property safety of shareholders.
Second, the characteristics of private limited liability companies
Private limited liability company is a company invested and operated by private investors, which usually has centralized ownership structure and high decision-making efficiency. This kind of company form is common in private enterprises, and its management is usually more flexible and can adapt to market changes quickly. However, due to the particularity of ownership structure, private limited liability companies may face certain challenges in introducing external investors and expanding their scale.
Third, the relationship between limited liability companies and private limited liability companies.
There is a certain inclusion relationship between limited liability company and private limited liability company. Private limited liability company is a special form of limited liability company, which conforms to the basic characteristics of limited liability company, that is, shareholders bear limited liability. However, not all limited liability companies are private, and some limited liability companies may be established by state-owned enterprises, foreign-funded enterprises or other institutions.
To sum up:
Limited liability company and private limited liability company are not the same concept. Limited liability company is a broader form of company organization, and its shareholders bear limited liability for the company's debts; Private limited liability company is a specific form of limited liability company, especially a company established and operated by private investors. They are different in definition and characteristics, but in practice, private limited liability company is an important part of limited liability company.
Legal basis:
Company Law of the People's Republic of China
Article 3 provides that:
The company is an enterprise legal person, with independent legal person property and legal person property rights. The company is liable for its debts with all its property.
Shareholders of a limited liability company shall be liable to the company to the extent of their subscribed capital contribution; Shareholders of a joint stock limited company shall be liable to the company to the extent of the shares subscribed by them.
Article 20 provides that:
Shareholders of the company shall abide by laws, administrative regulations and the articles of association, exercise their rights according to law, and shall not abuse their rights to harm the interests of the company or other shareholders; The company's independent legal person status and the limited liability of shareholders shall not be abused to harm the interests of the company's creditors.
Shareholders of a company who abuse their rights and cause losses to the company or other shareholders shall be liable for compensation according to law.
Shareholders of a company who abuse the independent status of a company as a legal person and the limited liability of shareholders to evade debts and seriously damage the interests of creditors of the company shall be jointly and severally liable for the debts of the company.