The Difference Between A Limited Liability Company And A Limited By Share Ltd

The fundamental difference between the two forms is that Limited by Share Ltd can issue shares on the stock market, while limited liability companies can not issue shares. list 。

The same thing: limited liability companies and Limited by Share Ltd are all company owned enterprises. Shareholders of a company bear limited liabilities for the company's debts. Partnership and individual proprietorship, private Enterprises, individual businesses and non company enterprises can only be regarded as enterprises rather than real ones. The 6 words of "limited liability company" and "Limited by Share Ltd" are 6 words which are integrated and cannot be split. If "Limited by Share Ltd" removed "shares" two words, only "limited company" 4 words, it is not a real company, "limited liability company" to remove "responsibility" two words is not a real company. The name of any company can be immediately seen if it is a corporate system.

The difference is:

(1) a limited liability company shall be jointly funded by more than two or less than fifty shareholders; the Limited by Share Ltd shall be a sponsor of more than five persons. Shareholder No capital limit, all capital is divided into equal shares. Keyword contrast: more than two or less than fifty / five or more.

(2) when the debt is paid off, each shareholder of a limited liability company has limited liability to the company with the amount of capital contribution it subscribes, and each shareholder of the Limited by Share Ltd shall bear the responsibility for the company's shares. Keyword contrast: subscribed capital / subscribed share.

Please pay attention to the term "capital contribution". The amount of contribution is divided into the actual amount of capital contribution and the amount of capital contributions subscribed to (the articles of association). In fact, the actual amount of capital contribution and the amount of capital contributions subscribed are often not equal, and there is a false investment or capital contribution. The original company law stipulates that "every shareholder of a limited liability company has limited liability to the company with its capital contribution". If a shareholder fails to make contributions or fails to invest in the company, he will not have to bear any liability. The new company law has changed the amount of capital contribution to "subscribed capital contribution", which has made up for this shortcoming.

(3) a limited liability company is a non-listed company; Limited by Share Ltd is generally a listed company.

The name of a limited liability company may be changed to a Limited by Share Ltd, and the name of Limited by Share Ltd can also be changed into a limited liability company, but all of them must be handled according to the provisions of the new company law.