What are the differences and characteristics between joint-stock companies and limited liability companies?

There are differences between a joint stock limited company and a limited liability company in terms of establishment conditions, share offering methods, the difficulty of share transfer, and the form of equity certificate. Functions mainly include:

1. The joint-stock company has the characteristics of extensive shareholders, joint venture, limited liability of shareholders, openness of shares, freedom and openness.

2. A limited liability company has the characteristics of any joint venture, with closed fund-raising, cylindrical organization and strict equity transfer.

legal ground

Article 29 of the Company Law of People's Republic of China (PRC)

After the shareholders have paid the capital contribution specified in the Articles of Association in full, the representative designated by all shareholders or the agent entrusted by all shareholders shall submit the application for company registration, the Articles of Association and other documents to the company registration authority to apply for registration of establishment.

Article 77

The establishment of a joint stock limited company can be initiated or raised.

A promoter refers to a company established by the promoters who subscribe for all the shares that should be issued by the company.

The establishment by public offering means that the promoters subscribe for part of the shares that should be issued by the company and raise the remaining shares to the public or specific objects to establish the company.