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China Limited Liability Company Registration

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Definition of China Limited Liability Company

A China Limited Liability Company (abbreviated LLC), also known as China Limited Company, refers to the company type in which the shareholders are solely responsible for the debts of the company with their capital contribution.

China Limited Liability Company Registration

Business China offers unmatched services for the establishment of an LLC, and ensures an easy and hassle-free Limited Liability company registration process for all of its customers.

Five Preconditions for Establishing a China Limited Liability Company

Under China corporate law, the following are the five pre-conditions for a China Limited Liability company registration:
  • All members of shareholders shall be less than fifty.
  • The total amount of investment subscribed by all shareholders by the provisions of the articles of association.
  • All shareholders jointly formulate the Articles of Association
  • Does the company name and establishment of the organization meet the requirement of limited liability company?
  • Registered office address for the business operation

Types of China Limited Liability Company

With the Limited Liability company registration service that Business China provides its clients, you can have your China Limited Liability company registration in the least amount of time.

Sole-funded Company (For example, China WFOE or WOFE)
A limited liability company with multiple investors (China Joint Venture)

There are many benefits of a China Limited Liability company registration. The following are just some of the many advantages that are offered to foreign entrepreneurs who are able to complete the China Limited Liability company registration verification process successfully, and are allowed to do business in China;

Owners Bear Limited Liability

Getting a China Limited Liability company registration means that a business has the reassurance of ‘limited liability.’ This means, the shareholders of the limited liability company bear limited liability, and as such, are not held personally liable for any financial loss of your company. An LLC company protects your assets from the encroach on business losses.

Enjoy Protection

Your limited liability company registered in China enables your company name and registered products & intellectual property under protection by China law. You will have legal right to take legal actions for any infringement.

China LLC has a Separate Legal Identity

A China limited liability company (LLC) is an entirely separate legal entity from its shareholders. In other words, from the company business operation to a financial position is wholly different from the owner’s interests.

Quick and Easy to Start

China limited liability company registration made easy and quick to start. Business owners are not required to come to China personally to start china company registration, and all procedures can finish online.

Easy to Transfer Ownership

A China limited liability company has limited members of shareholders. It is effortless to transfer ownership wholly or partially within China limited liability company.

Easy to Exit from the Business

Setting up a business as a limited company can aid the possibility of selling it in the future, which can be unreachable for other business structures. The original owner could be able to exit the business entirely without worries.

China Limited Liability Company’s Organ of Power - the Board of Shareholders

The organ of power of an LLC is the board of shareholders, which is a non-permanent institution made up of all shareholders to express the company's operation plan, which is a necessary institution for every company. According to China Law, all shareholders must uphold the interests of the company or other shareholders, and are not permitted to practice any form of prejudice or abuse the shareholder’s rights.

The Functions and Powers of the Shareholders' Committee

China's company law stipulates that the functions of the shareholders after a China Limited Liability company registration shall include:

Determine the company's operating principles and investment plans.
Elect and replace directors and decide on the remuneration of the directors.
Elect and replace the supervisors appointed by the shareholders' representatives to decide on the remuneration of the supervisors.
Consider and approve the report of the board of directors.
Examination and approval of reports of supervisors or supervisors.
Consider and approve the company's annual financial budget plan and decision plan.
Consider and approve the company's profit distribution plan and make up the loss plan.
Reach a resolution on increasing or reducing the registered capital of the company.
Decision-making on the issuance of corporate bonds.
Make declarations on the transfer of capital contribution to the shareholders other than the shareholders.
Make decisions on the merger, division, change of company form, dissolution and liquidation of the company.
Amending the articles of association.

China Limited Liability Company's Executive Body - Board of Directors / Executive Director

The executive body of a limited liability company is the board of directors or the executive director. It is generated by the shareholder election to perform the internal implementation of the company business and act as the permanent institution. Business China goes the extra mile when it comes to ensuring that the foreign entrepreneurs that go through the China Limited Liability company registration process are fully aware of all the prerequisites and conditions of setting up a LLC in China.

Authority of the Board of Directors

China's company law stipulates that the functions and powers of the board of directors of limited liability companies include:
Convene shareholders' meeting and report to the shareholders' committee.
Come to a resolution of the shareholders' meeting.
Determine the company's business plan and investment plan.
Formulate the company's annual financial budget plan and decision plan.
Frame the company's profit distribution plan and the compensation and loss plan.
Plan the company’sincrease or reduction of registered capital.
Formulate plans for a merger, division, change of company form and dissolution of contracts.
Determine the setting of internal management of the company.
Appoint or dismiss the manager of the company (general manager), appoint or dismiss the company's deputy manager and finance director according to the nomination of the manager, and decide on his remuneration.
Formulate the primary management system of the company.

The Functions and Powers of the Board of Supervisors or Supervisors

According to Chinese law, after the process of a China Limited Liability company registration all functions and powers exercised by the board of supervisors or supervisors shall include:

I. Checking the company's finance.
II. The supervision of all actions of the directors and managers who violate laws, regulations or articles of association when they perform the duties of the company.
III. If it is found that the behavior of the director and the manager damages the interests of the company, the directors and the manager shall be required to correct it.
IV. Carry out temporary shareholder meetings.
V. All other functions and powers prescribed by the articles of association.

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