NO.

Difference

Joint Stock Company

Limited Liability Company

1

Number of shareholders or members

At least 3 shareholders. No maximum number of shareholders.

1-50 members (shareholders).

2

Transfer of ownership

Shareholders can freely transfer their shares except for the circumstances stipulated by the law and company charter.

Ownership can only be transferred to a external party when the other members (shareholders) of the company do not purchase.

3

Management Structure

Typical structure:

1)       general meeting of shareholders

2)       board of management

3)       inspection committee (If the JSC has less than 11 shareholders, and organizational shareholders own less than 50% of the total shares, it is not required to have an inspection committee).

4)       a director or general director

Typical structure:

1）chairman of the company or member’s council

2）director or general director

4

Issuance of shares and securities

Can issue shares or other securities to the public.

Not allowed.

5

Reporting and disclosure obligations

Stricter reporting requirements and disclosure of financial statements is required.

Not required to disclose financial statements unless specified.