1. A joint-stock company refers to a company with shares as its capital, and its shareholders are liable to the company to the extent of the shares subscribed. China's "Company Law" stipulates that the establishment of a joint stock limited company should have more than 2 promoters and less than 200 people. Because all joint-stock companies must be limited liability companies (but not all limited companies are joint-stock companies), they are generally called "joint-stock companies".
Main features: the total capital of the company is divided into equal shares; A company may issue shares to the public to raise funds, and the shares may be transferred according to law; The law only has the minimum number of shareholders in the company, but there is no maximum amount; Shareholders shall bear limited liability to the company with their subscribed shares, and the company shall bear liability for the company's debts with all its assets; One vote per share, shareholders enjoy rights and assume obligations with the subscribed shares; The company shall disclose the accounting reports audited by certified public accountants.
2. A limited liability company, referred to as a limited liability company for short, refers to an economic organization registered in accordance with the Regulations of the People's Republic of China on the Administration of Company Registration, which is established by shareholders with less than 50 employees. Each shareholder is limited to the subscribed capital contribution, and the company as a legal person takes full responsibility for the company's debts with all its assets. Limited liability companies include wholly state-owned companies and other limited liability companies.
Features: limited company is the most important organizational form for Chinese enterprises to implement corporate system, which refers to registration according to the Regulations of the People's Republic of China on the Administration of Company Registration. Its advantage is that the establishment procedure is relatively simple, and there is no need to issue an announcement or account number. In particular, the company's balance sheet is generally not open, and the company's internal institutions are flexible. Its disadvantage is that it is impossible to issue shares publicly, and the scope and scale of funds raised are generally small, which is difficult to meet the needs of large-scale production and operation activities. Therefore, the form of limited liability company (limited company) is generally suitable for small and medium-sized non-joint-stock companies.
For entrepreneurship, limited liability companies are more suitable for entrepreneurship, and most investment and financing schemes and VIE structures are designed based on limited liability companies.
Reply time: 2020- 12-28. Please refer to the latest business changes announced by Ping An Bank in official website.
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