What are the requirements for establishing a joint stock limited company?

The establishment of a joint stock limited company requires the following conditions:

1. There are two or more promoters but not more than 200, and more than half of the promoters must have a residence in China;

2. There is the total capital contribution subscribed by all promoters or the total paid-in capital raised in accordance with the articles of association;

3. There are articles of association that comply with the law;

4. The issuance and preparation of shares comply with the law;

5. Having the company name, domicile and organization.

The difference between joint-stock companies and limited companies:

1. Limited liability company belongs to "human capital joint venture". Its operation is not only the combination of capital, but also the trust relationship between shareholders. At this point, it can be considered that it is based on partnership and joint stock limited company; A joint stock limited company is a joint venture company, which is a capital combination between shareholders, not based on the trust relationship between shareholders;

2. Differences in the forms of equity expression: In a limited liability company, the total equity is not evenly divided, and shareholders' rights and interests are expressed by the proportion of their subscribed capital contribution, and shareholders enjoy rights and assume responsibilities according to the proportion of their subscribed capital contribution when voting and paying off debts; The total capital of a joint-stock company is divided into a small number of shares and equal shares. The voting rights of shareholders are calculated according to the subscribed capital contribution, with one vote per share.

In a word, a limited liability company can only raise funds from sponsors, but not from the public, issue shares or go public. The establishment process is as follows: conclusion of articles of association-capital contribution by shareholders-capital verification by capital verification institutions-establishment registration; A joint stock limited company can not only set up a limited liability company, but also raise funds from the public and go public for financing. However, the establishment process is complicated: formulating the articles of association-the promoters subscribe for shares and publicly issue shares to the public-capital verification-convening the founding meeting-establishment registration.

Legal basis:

Article 76 of the Company Law of People's Republic of China (PRC)

The establishment of a joint stock limited company shall meet the following conditions:

(1) The promoters meet the quorum;

(2) The total amount of capital subscribed by all promoters or the total amount of paid-in capital raised conforms to the provisions of the Articles of Association;

(3) The issuance and preparation of stocks comply with the law;

(4) The articles of association formulated by the promoters have been adopted by the founding meeting;

(5) Having a company name and establishing an organization meeting the requirements of a joint stock limited company;

(6) Having a company domicile.