Difference and connection between limited liability company and joint stock limited company

1. Different forms of equity expression: shareholders of a limited liability company are liable to the company to the extent of their capital contribution, while shareholders of a joint stock limited company are liable to the company to the extent of their shares.

2. Different number of shareholders: Generally, the number of shareholders of a limited liability company shall not exceed 50, while the number of promoters of a joint stock limited company shall be 2 or more and 200 or less, and more than half of the promoters must have their domicile in China.

3. Different ways of establishment: limited liability companies can only be established by promoters, and joint stock limited companies can raise funds from the society, and the shares subscribed by promoters shall not be less than 35% of the total shares of the company.

4. The degree of standardization of organizational structure is different: a joint stock limited company must set up a board of directors and a board of supervisors, and a limited liability company may not.

5. Equity transfer is different: the equity transfer of a limited liability company is relatively more restricted, while the equity transfer of a joint stock limited company is more free and can be carried out in a legally established securities exchange.