How to understand the limited liability of the company?

Legal analysis: the company bears unlimited liability for its own debts until the company is cancelled after bankruptcy liquidation; Limited liability in company law means that shareholders bear limited liability for the company or its debts. A limited liability company refers to a company whose liability is limited to the scope of the company and does not involve the personal property of shareholders unrelated to the company.

Legal basis: Article 23 of the Company Law of People's Republic of China (PRC) shall meet the following conditions for establishing a limited liability company:

(1) Shareholders meet the quorum.

(2) Shareholders' capital contribution reaches the minimum statutory capital.

(III) Shareholders * * * agree to formulate the Articles of Association.

(4) Having a company name and establishing an organization meeting the requirements of a limited liability company; (5) Having a company domicile.