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.
Whether it is a limited company or a joint-stock company, their biggest feature is that shareholders' responsibility to the company is limited and limited by their capital contribution. That is to say, when the company's assets are insufficient to repay the debts owed, shareholders do not have to bear joint and several liability for repayment, that is, they do not need to pay debts for the company.
Compared with a limited company, an unlimited liability company means that shareholders bear unlimited joint 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.
In addition, there is another company, called a joint venture company. Some shareholders have limited liability to the company, while others have unlimited liability to the company. Therefore. These two kinds of companies have the characteristics of limited company and unlimited company. Similarly, in our country, joint ventures are not allowed.