Are there two ways to set up a joint-stock company: initiation and raising?

There are two ways to set up a joint-stock company: initiation and offering. Initiation refers to a way of company establishment in which sponsors subscribe for all shares and do not publicly issue shares. The establishment of public offering refers to the way that the promoters subscribe for part of the shares issued by the company in the first phase and the rest form a joint stock limited company through public offering.

legal ground

Article 77 of the Company Law of People's Republic of China (PRC)

The establishment of a joint stock limited company can be initiated or raised.

A promoter refers to a company established by the promoters who subscribe for all the shares that should be issued by the company.

The establishment by public offering means that the promoters subscribe for part of the shares that should be issued by the company and raise the remaining shares to the public or specific objects to establish the company.