The difference between a management company and a limited liability company

Limited liability company, referred to as limited company. There are only two forms of corporate companies in China: limited liability companies (joint stock companies or limited companies) and joint stock companies (joint stock companies), so let's compare the differences between limited liability companies and joint stock companies.

(1) is a joint venture or a joint venture.

Limited liability company is produced on the basis of absorbing the advantages of unlimited company and joint stock limited company. On the one hand, its shareholders are limited to the amount of capital contribution, enjoy rights and bear responsibilities, which is different from unlimited companies. On the other hand, because of its non-public offering, shareholders are closely related and have certain humanity, so it is different from a joint stock limited company.

A company limited by shares is a complete joint venture. Its own composition and credit basis is the company's capital, which has nothing to do with the personal nature (reputation, status and prestige) of shareholders, and shareholders are not allowed to invest in personal credit and services. This complete capital combination is different from unlimited companies and limited liability companies.

(2) Whether the shares are equal.

All the assets of a limited liability company do not need to be divided into equal shares, and shareholders only need to contribute according to the proportion of capital contribution determined in the agreement, and enjoy rights and assume obligations according to this proportion. Generally speaking, a joint stock limited company must convert its shares into equal shares, which is different from a limited liability company. This feature also ensures the universality, openness and equality of the joint stock limited company.

(3) Number of shareholders.

A limited liability company should not have too many shareholders because of its humanity and trust among shareholders. China's company law stipulates 2-50 people.

There are both upper and lower limits on the number of shareholders in a limited liability company, while a joint stock limited company has only a lower limit, that is, only the minimum number of promoters is stipulated, but in fact only the minimum quorum of shareholders is stipulated, and there is no examination and approval of shareholders' departments.

Limited liability companies are mostly small and medium-sized enterprises, and because of their closeness and humanization, the legal requirements are not as strict as those of joint-stock companies, and some of them can be simplified and have certain arbitrary choices.

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