Limited liability company is one of the legal corporate forms in China, and it is also one of the important organizational forms for Chinese enterprises to implement corporate system. Registered in accordance with the Regulations of the People's Republic of China on the Administration of Company Registration. Limited liability companies include wholly state-owned companies and other limited liability companies. Their advantage is that the establishment procedure is simple and there is no need to publish announcements, accounts and balance sheets. The internal organization of the company is flexible. However, because the issue of shares cannot be made public, the scope and scale of funds raised are small, which can not meet the needs of large-scale production and operation activities. Therefore, limited liability companies are mainly suitable for small and medium-sized non-joint-stock companies.