(2) The number of shareholders is different. A limited liability company shall be established by capital contribution of shareholders with less than 50 persons. A joint stock limited company shall have two or more promoters but not more than 200, of whom more than half of the promoters shall have their domicile in China.
(3) Different ways of establishment. Limited liability companies can only raise funds from sponsors, and joint stock limited companies can raise funds from the society.
Where a joint stock limited company is established by offering, the shares subscribed by the promoters shall not be less than 35% of the total shares of the company.
(4) The degree of standardization of organizational setup is different. A joint stock limited company must set up a board of directors and a board of supervisors, and a limited liability company may not.
(5) The equity transfer is different. Limited companies are relatively more restrictive, and other shareholders have the priority to transfer their shares under the same conditions.
Shareholders of a joint stock limited company shall transfer their shares in a legally established securities exchange or in other ways prescribed by the State Council.
Legal basis: People's Republic of China (PRC) Company Law.
Article 24 A limited liability company shall be established by capital contribution of shareholders with less than 50 persons.
Article 78 To establish a joint stock limited company, there shall be two or more promoters, more than half of whom shall have their domicile in China.