What are the similarities and differences among limited liability companies, joint stock companies and partnerships?

A limited liability company, referred to as a limited liability company for short, refers to an economic organization registered in accordance with the Regulations of the People's Republic of China on the Administration of Company Registration and established by shareholders with less than 50 employees. Each shareholder shall bear limited liability to the company to the extent of the subscribed capital contribution, and the company shall bear full responsibility for the company's debts with all its assets. Limited liability companies include wholly state-owned companies and other limited liability companies.

A joint-stock company refers to a company with shares as its capital, and its shareholders are liable to the company to the extent of the shares subscribed by them. China's "Company Law" stipulates that the establishment of a joint stock limited company should have more than 2 promoters and less than 200 people. Because all joint-stock companies must be limited liability companies (but not all limited companies are joint-stock companies), they are generally called "joint-stock companies".

A partnership enterprise refers to a for-profit organization in which all partners enter into a partnership agreement, * * * jointly contribute capital, * * * jointly operate, * * * enjoy profits, * * * bear risks, and bear unlimited joint and several liabilities for corporate debts. It also refers to the enterprise organization form in which natural persons, legal persons and other organizations are established in China in accordance with the Partnership Enterprise Law of People's Republic of China (PRC), and two or more natural persons enter into a partnership agreement, * * * jointly contribute to the operation, * * * assume sole responsibility for profits and losses, and * * * bear risks.

Reply time: 2021-12-16. Please refer to the latest business changes announced by Ping An Bank in official website.