The difference between a joint-stock company and a limited company

Legal analysis: The main differences between a joint stock limited company and a limited company are: 1, which are different in nature. A joint stock limited company is a joint venture company and a limited liability company is a "human capital joint venture company"; 2. The number of shareholders is different. A joint-stock company shall have at least two promoters, with no upper limit, and a limited liability company shall have less than 50 persons; 3, the establishment of different ways, limited companies can only be raised by the promoters, not to the public offering, can not be listed. Joint-stock enterprise refers to a form of enterprise organization in which three or more stakeholders (at least three) voluntarily combine in the form of joint-stock operation. Joint-stock enterprises are enterprise organizational forms that meet the needs of socialized production and the development of market economy, realize the relative separation of ownership and management rights, and are conducive to strengthening enterprise management functions. The characteristics of joint-stock enterprises are as follows: issuing shares as a voucher for shareholders to buy shares, on the one hand, obtaining dividends, on the other hand, participating in the operation and management of enterprises; Establish the internal organizational structure of the enterprise. The shareholders' meeting is the highest authority of the joint-stock enterprise, the board of directors is the permanent institution of the highest authority, and the general manager presides over the daily production and business activities; The responsibility of taking risks, the ownership income of joint-stock enterprises is scattered, and the operating risks are shared by many shareholders. With a strong dynamic mechanism, many shareholders care about the operation of enterprise assets from the perspective of interests, which makes the major decisions of enterprises tend to be optimized, and the development of enterprises can be based on the interest mechanism.

Legal basis: People's Republic of China (PRC) Company Law.

Article 6 To establish a company, it shall apply to the company registration authority for registration of establishment according to law. Those that meet the conditions for establishment as stipulated in this Law shall be registered as limited liability companies or joint stock limited companies respectively by the company registration authority; Those who do not meet the conditions for establishment as stipulated in this Law shall not be registered as a limited liability company or a joint stock limited company.

Where laws and administrative regulations stipulate that the establishment of a company must be approved, the approval procedures shall be handled according to law before the company is registered. The public may apply to the company registration authority to inquire about the registered items of the company, and the company registration authority shall provide inquiry services.

Article 7 A company established according to law shall be issued a business license by the company registration authority. The date of issuance of the business license of the company is the date of establishment of the company. The company's business license shall specify the company's name, domicile, registered capital, business scope, name of legal representative and other matters. Where the matters recorded in the company's business license change, the company shall register the change according to law, and the company registration authority shall issue a new business license.