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List of differences between line numbers, limited companies, and limited companies

Company Line Number Organizational Difference Comparison Table Latest Update Lazy Package

Comparison Table of Organizational Differences of Company Line Numbers

Number of Shareholders Threshold
• Limited company: composed of more than one shareholder.
• Limited company
Principle: There should be more than two sponsors.
Exception: One government or legal person shareholder is not subject to the above restrictions.

right to vote
• limited company
Principle: Each shareholder has one voting right regardless of the amount of capital contribution.
Exception: It may be stipulated in the articles of association that voting rights are distributed in proportion to the amount of capital contribution (Article 102).
• Joint stock companies: one vote per share.

Capital Contribution Transfer Restrictions
• Limited company: Shareholders cannot transfer to others without the approval of more than half of all other shareholders. Shareholders who disagree have the priority of transfer.
• Limited company:
Principle: Free transfer shall not be prohibited or restricted by the articles of association.

The nature of the income from the transfer price difference of the capital contribution
• Limited company: income from property transactions
• Limited company
Unprinted Shares: Proceeds from Property Transactions
With Printed Shares: Stock Exchange Income

Form of investment
• Limited company: The shareholder's contribution is called "capital" and should be fully paid by the shareholder, so there is no difference between authorized capital and paid-in capital.
• Co., Ltd.: capital should be divided into shares, and shares are issued in batches, so there is a difference between authorized capital and paid-in capital.

special stock
• Limited company: No preference shares may be issued.
• Limited company: may issue special shares.

decision-making body
• Limited company: Shareholders vote directly.
• Limited by Share Ltd: through resolutions of the shareholders' meeting and the board of directors.

Supervisory power
• Limited company: Shareholders who do not perform business can exercise supervisory power.
• Co., Ltd.: Supervisors shall supervise the execution of the company's business, and may investigate the company's business and financial status at any time, check the books and documents, and may request the board of directors or managers to submit reports.

Qualification and number of directors
• Limited company: need to have shareholder status; at least 1, maximum 3.
• Joint stock company: no need to have shareholder status; at least 1.

Director's tenure
• Limited Company: No restrictions.
• Company limited by shares: the term of directors shall not exceed three years. But you have to be re-elected.

change organizational form
• Limited company: Can be changed into a company limited by shares.
• Limited company: cannot be changed back to a limited company.

conclusion and suggestion
To sum up, we can find that a limited company is an organizational form that can be established by one person, with a simpler structure and more stable equity; on the other hand, a joint stock company has the advantages of a relatively complete structure and high equity liquidity. Entrepreneurs can choose a company form that suits them according to the actual cooperation model; or consider the flexible approach of adopting a limited company at the initial stage, and then reorganizing into a joint stock limited company according to the needs of the situation.

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