Legal analysis: Limited liability companies belong to the nature of enterprises. Limited liability companies are also divided into two types, state-owned enterprises and private enterprises, but no matter which type, they belong to the nature of enterprise units and do not belong to government agencies. In general, a company will have less than 50 shareholders. Limited companies include limited liability companies and joint-stock companies. Limited company is an upper concept, including limited liability company and joint stock limited company. In real life, people often call a limited liability company a limited company. Specifically, there is no substantial difference between the two. Because both limited companies and limited liability companies embody the limited liability of shareholders to the company, this is a great progress of modern company law. It should be noted that there is a difference between a limited liability company and a joint stock limited company. The main difference is that the shareholders of a limited liability company are liable to the company to the extent of their capital contribution, while the shareholders of a joint stock limited company are liable to the company to the extent of their shares.
Legal basis: People's Republic of China (PRC) Company Law.
Article 2 the adjustment object
The term "company" as mentioned in this Law refers to limited liability companies and joint stock limited companies established in China according to this Law.
Article 3 Definition of Company and Shareholders' Responsibility
The company is an enterprise legal person, with independent legal person property and legal person property rights. The company is liable for its debts with all its property. Shareholders of a limited liability company shall be liable to the company to the extent of their subscribed capital contribution; Shareholders of a joint stock limited company shall be liable to the company to the extent of the shares subscribed by them.