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A limited liability company (hereinafter referred to as a limited company) refers to an economic organization registered in accordance with the Regulations of the People's Republic of China on the Administration of Company Registration, which is established by shareholders with less than 50 employees. Each shareholder shall bear limited liability to the company with the amount of capital subscribed, and the company shall be liable for its debts with all its assets. Limited liability companies include wholly state-owned companies and other limited liability companies.
The term "limited liability company" as mentioned in the Company Law refers to a company established within the territory of China, and the shareholders of the company are liable to the company to the extent of their subscribed capital contribution.
Limited liability company is a joint venture company, but there are also some corporatization factors. It has the following characteristics:
1. Shareholders of a limited liability company are liable to the company only to the extent of their capital contribution.
2. The number of shareholders of a limited liability company is limited. According to the Company Law of China, a limited liability company consists of 65,438+0 shareholders and 50 shareholders.
3. A limited liability company cannot make a public offering or issue shares.
4. Limited liability company is a company form that combines the advantages of joint venture company and joint venture company.
A limited liability company is an operating company with legal person rights. The fixed capital share composed of the ownership (i.e. capital share) invested by the participants gives the participants the right to participate in the operation and management of the company, and according to the share, they get a part of the company's profits, i.e. dividends, and when the company goes bankrupt, they get the bankruptcy share and enjoy other rights according to law.
Reference: Baidu Encyclopedia Co., Ltd.