A limited liability company is an economic organization registered in accordance with the Regulations of the People's Republic of China on the Administration of Company Registration and established with the contribution of less than 50 shareholders. All shareholders and subscribed capital contributions are limited to the company, and the company is fully responsible for its debts with all its assets.
Therefore, this kind of company is also the choice of most entrepreneurs, because limited liability companies are relatively easy to set up, while joint stock limited companies are very difficult and need to invest a lot of money.
Related information introduction:
Article 125 of People's Republic of China (PRC) Company Law
The capital of a joint stock limited company is divided into shares, and the amount of each share is equal. The shares of the company take the form of shares. A stock is a certificate issued by a company to prove the shares held by shareholders.
Article 126
Stock issuance shall follow the principles of fairness and justice, and each share of the same class shall enjoy the same rights. For the same class of shares issued at the same time, the issuance conditions and prices of each share shall be the same; Any unit or individual shall pay the same price for each share subscribed.