A company refers to a for-profit corporate legal person established in China in accordance with the “Company Law of the People’s Republic of China”, including a limited liability company and a joint stock limited company.
Budding period
Before the company appeared, the sole proprietorship was the most typical form of business; coexisting with the sole proprietorship were various partnership organizations, and the most typical partnership organization at that time was the family-run group.
Before the formation of the company, the partnership organization did not obtain the status of a legal person, but some other legal person bodies appeared. This situation can be traced back to ancient Roman times. In ancient Rome, the state, local self-government groups, religious groups such as monasteries, and public welfare charities such as nursing homes all achieved the status of legal persons. By the Middle Ages, some trade groups had acquired the status of legal persons, especially those engaged in overseas trade. In medieval England, such organisations enjoyed greater independence than partnerships.
Unlimited company
The first company to be created was the Unlimited Company. However, there is no essential difference between an unlimited company and a partnership, and it is only a partnership organization that has obtained the status of a legal person.
The first legislation concerning unlimited companies was the Commercial Regulations of Louis XIV of France in 1673, known at the time as ordinary companies. In 1807, the “French Commercial Code” was renamed the joint company. The “Japan Commercial Code” also stipulates that there is a “joint company”. After the establishment of the unlimited company, there has been considerable development, but with the emergence of the joint stock limited company and the limited liability company, the unlimited company has relegated to a secondary position.
Gmbh & co. kg
The K&B company evolved from the Comanda organization that emerged in the 15th century. In the Conmanda organization, some people contribute capital, but bear limited liability; some contribute, but bear unlimited responsibility. Later, the Conmanda organization developed into two forms of enterprise, one is a dormant partnership (limited partnership) and the other is a limited partnership. After the emergence of the joint stock limited company, the K&B company has also evolved into a new form: the joint-stock company. But in the end, due to the emergence of joint stock companies and limited liability companies, the two companies did not develop on a large scale.
Co., Ltd.
In 1555, the Queen of England chartered trade with Russian companies, resulting in the first joint-stock company in the modern sense. It is generally believed that the joint stock limited company originated from the colonial companies established by Britain, the Netherlands and other countries in the 17th century. For example, the famous British East India Company and the Dutch East India Company were the earliest joint stock companies. In 1807, the “French Commercial Code” for the first time made a complete and systematic regulation for joint stock companies. Up to now, the limited company has become the dominant corporate form in the Western capitalist world.
Limited liability company
The limited liability company first appeared in Germany at the end of the 19th century. A limited company basically absorbs the advantages of an unlimited company and a joint stock company, and avoids the shortcomings of the two, especially for small and medium-sized enterprises. The earliest limited liability company legislation was the German Limited Liability Company Act of 1892. After that, France in 1919 and Japan in 1938 also enacted the Limited Company Law.
