Traditional Culture Encyclopedia - Traditional culture - The difference between industrial companies and limited companies
The difference between industrial companies and limited companies
1, the concept is different, industrial companies are usually some production, manufacturing, technology-based enterprises, industrial companies generally have many subordinate enterprises (usually more than three). A limited liability company, referred to as a limited company for short, is an economic organization established by less than 50 shareholders. Each shareholder shall bear limited liability to the company to the extent of the capital contribution subscribed, and an enterprise as a legal person shall bear full liability for the company's debts with all its assets. Limited liability companies include wholly state-owned companies and other limited liability companies;
2. Different characteristics. One of the most obvious characteristics of industrial companies is that the goods they provide are absolutely physical, or that companies with their own factories or entities rely on it, which is the opposite of trading companies. Characteristics of limited company: Limited liability company is the most important organizational form for Chinese enterprises to implement corporate system. Its advantage is that the establishment procedure is relatively simple, and there is no need to issue an announcement or account number. In particular, the company's balance sheet is generally not open, and the company's internal institutions are flexible. Its disadvantage is that it is impossible to issue shares publicly, and the scope and scale of funds raised are generally small, which is difficult to meet the needs of large-scale production and operation activities. Therefore, this form of limited liability company is generally suitable for small and medium-sized non-joint-stock companies;
3. The classification of companies is different. China law clearly stipulates that companies are divided into limited liability companies and joint stock limited companies. Does not include industrial companies, industrial companies, etc.
The characteristics of Industrial Co., Ltd. are as follows:
1. Shareholders of a limited liability company are liable to the company only to the extent of their capital contribution;
2. The combination of human resources and capital, the combination of limited liability companies, mainly between the shareholders of the company, similar to the partnership system;
3. Closing is neither open nor open. In terms of the number of shareholders, it generally does not exceed 50;
4. The establishment procedure is simple. Generally speaking, as long as you have the conditions of company law, you can apply for opening an account;
5. Shareholders have accumulated and participated in company activities;
6. The organization is flexible. If the number of shareholders is small and the scale is small, there may be an executive director, no board of directors or one or two supervisors, and no board of supervisors;
7. The scale is specific and can be large or small.
To sum up, to apply for company registration, the applicant should be responsible for the authenticity of the application documents and materials, and as an enterprise responsible for the country.
Legal basis:
Article 6 of People's Republic of China (PRC) Company Law
To establish a company, it shall apply to the company registration authority for registration of establishment according to law. Those that meet the conditions for establishment as stipulated in this Law shall be registered as limited liability companies or joint stock limited companies respectively by the company registration authority; Those who do not meet the conditions for establishment as stipulated in this Law shall not be registered as a limited liability company or a joint stock limited company. Where laws and administrative regulations stipulate that the establishment of a company must be approved, the approval procedures shall be handled according to law before the company is registered. The public may apply to the company registration authority to inquire about the registered items of the company, and the company registration authority shall provide inquiry services.
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