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China Limited Liability Company Formation

Updated:2018-5-29 17:07:08    Source:www.tannet-group.comViews:546

China Limited Liability Company, 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 own capital contribution. The Limited Liability Company (LLC), is a popular legal format for business owners. It's available in all provinces and cities in China. Small business owners are taking advantage of the LLC because it is easier to set up and maintain than a company limited by shares.

Each jurisdiction has different rules governing the formation of a limited liability company. This exposition provide you with the basics of limited liability companies and help guide your decision of company business formation in China. Company laws vary in each jurisdiction. It is advisable to seek tax and legal counsel to determine the best choice for your individual circumstance.

Advantages of a Limited Company
Setting up a limited company in China, i.e. a China Limited Liability Company (abbreviated LLC) or a China Limited Company owns below advantages:
(1) Owners bear limited liability;
(2) Enjoy Protection;
(3) China LLC has a Separate Legal Identity;
(4) Quick and Easy to Start;
(5) Easy to Transfer Ownership;
(6) Easy to Exit from the Business.

Conditions on Establishing a China Limited Liability Company
1. The members of shareholders shall be less than fifty (50);
2. The amount of investment subscribed by all shareholders in accordance with the provisions of the articles of association;
3. Shareholders jointly formulate the Articles of Association
4. With company name and establishes the organization that meets the requirement of limited liability company;
5. With registered office address for business operation.

Incorporating a LLC in China
It is important that the organizer(s) of a prospective LLC follow the "enabling statutes" or formation laws of the national in which the company will be formed in order to be designated as an LLC. Without this designation, the company will lack the protection of limited liability and will be treated as a general partnership. Therefore, the first step in creating an LLC is to find out your national's specific enabling statutes.

The organizer does not have to be one of the company's members. The organizer's function is to file the articles of organization, a task which can be accomplished by a lawyer, a hired agent from a service company specializing in such business, or a manager of the prospective company.

Company or business Incorporation in China is not easy job. You can turn to a professional consulting firm for the whole registration process. Tannet provide free initial consultation. We can assist with company registration in Hong Kong, Shenzhen, Shanghai, Beijing, Guangzhou, Dongguan, Tianjin, Xiamen, Chengdu and other major cities.

Contact us
If you have further queries, don’t hesitate to contact TANNET anytime, anywhere by simply visiting Tannet website or calling China hotline at 86-20-87550061, or emailing to You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020, Dongmen Rd South, Luohu, Shenzhen, China.

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