Limited company means that if your investment fails, your company owes money to other companies, and you can't repay the debt. If you file for bankruptcy, you don't need to pay off the debts you owe, you just lose the money you originally invested.
However, there are still unlimited companies. Unlimited company means that after your investment fails, other companies will use your private property and property to fill the debts owed by your company.
I. The Company is established as a limited company.
1. Limited liability company, referred to as limited company for short. Shareholders are liable to the company to the extent of their capital contribution, and the company is liable to the company's debts with all its assets.
2. A joint stock limited company, referred to as a joint stock company for short, has all its capital divided into equal shares. Shareholders are liable to the company to the extent of their shares, and the company is liable to its debts with all its assets.
Ii. according to, the enterprise established by < Partnership > is an unlimited company.
Unlimited liability company means that shareholders bear unlimited joint and several liability for the company and its debts. In other words, if the company can't repay its debts, the shareholders should bear the responsibility for repayment. 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. These enterprises are not independent legal persons, so they cannot become companies, and the owners of enterprises directly bear unlimited corporate responsibilities.