At the time of company registration, I believe many people have heard of limited companies (full name is limited liability company) and limited company However, according to what I heard, many people may not know the difference between the two forms of companies. Today, the second brother of the enterprise will introduce what a limited liability company is.

First, let's talk about the definition of limited liability company:

Limited liability company, referred to as limited company, is a word we often hear in life, such as XXXXXX Co., Ltd. A limited liability company in China refers to an economic organization that is registered in accordance with the Regulations of the People's Republic of China on the Administration of Company Registration and is established by less than 50 shareholders, each shareholder is limited to the amount of capital contribution he has subscribed for, and the legal person of the company is fully responsible for the debts of the company with all its assets. Limited liability companies include wholly state-owned companies and other limited liability companies.

Advantages of the limited company:

The establishment procedure is relatively simple, and there is no need to publish accounts or make announcements. In particular, the balance sheet of the company is generally not disclosed, and the internal organization of the company is flexible.

Disadvantages of the limited company:

The inability to publicly issue stocks has resulted in a relatively small scope and scale of funds raised, which is difficult to meet the needs of large-scale production and operation activities.

In fact, everything has two sides, and the limited company is no exception. Different forms are suitable for different needs. Therefore, if you want to set up a limited company type, you must carefully weigh the advantages and disadvantages to see whether it is suitable for the development needs of your own company.