A limited liability company, also known as a joint stock limited company, is a legal person composed of shareholders with limited capital, who are responsible for the company, and the company and all its assets are responsible for the company's debts.
Characteristics of a limited liability company:
1) The shareholders of a limited liability company are only liable to the company to the extent of their capital contribution.
2) the combination of human resources and capital, the combination of people in a limited liability company, is mainly manifested in the company's shareholders, which is somewhat similar to partnership.
3) The closed type is neither open nor public, and the number of shareholders generally does not exceed 50.
4) The establishment procedure is simple. Generally speaking, you can apply for opening an account as long as you have the conditions of the company law.
5) Shareholders have accumulated and participated in company activities.
6) Flexible organization. If the number of shareholders is small and the scale is small, there may be an executive director, no board of directors or one or two supervisors, and no board of supervisors.
7) The scale is specific and can be large or small.
incorporated company
A company limited by shares means that a legal person divides all its capital into equal shares, and shareholders are liable to the company to the extent of the shares subscribed, and the company is liable to the company's debts with all its property.
A company limited by shares has the following characteristics:
1) Limited by Share Ltd is an independent Economic legal;
2) The number of shareholders of a joint stock limited company shall not be less than the quorum. For example, in France, the number of shareholders should be at least 7;
(3) The shareholders of a joint stock limited company shall bear limited liability for the debts of the company, and the liability limit shall be the number of shares payable by the shareholders;
4) All the capital of a joint stock limited company is divided into equal shares, and funds are raised through public offering. Anyone can become a shareholder of the company after paying the shares, and there is no qualification restriction;
5) The shares of the company can be freely transferred, but they cannot be withdrawn;
6) The company's accounts must be made public so that investors can know about the company and make choices;
7) The establishment and dissolution of the company have strict legal procedures and complicated procedures.