Companies mentioned in China's Company Law refer to limited liability companies and joint stock limited companies established in China according to the Company Law. It is a form of enterprise organization formed in the market economy to meet the needs of socialized mass production.
1. The limited liability of the shareholders of the company determines that the shareholders of the investment company can not only meet the needs of investors to seek benefits, but also limit the risks they bear to a reasonable range and increase their investment enthusiasm.
2. Companies, especially joint stock limited companies, can publicly issue stocks and bonds in the society, raise funds extensively, and facilitate the establishment of large enterprises.
3. The company implements the principle of complete separation of ownership and management rights, which improves the management level of the company.