1, shell companies generally have the following characteristics:
(1) Never appointed a director;
(2) The official seal, stock certificate and other documents required by law are available;
(3) Never started business, so the buyer only needs to provide the required documents and can use them immediately without worrying about hidden risks.
2. Legal basis: Article 23 of People's Republic of China (PRC) Company Law.
Conditions for establishing a limited liability company To establish a limited liability company, the following conditions shall be met:
(1) Shareholders meet the quorum;
(2) The capital contribution subscribed by all shareholders in accordance with the Articles of Association;
(3) Shareholders * * * agree to formulate the Articles of Association;
(4) Having a company name and establishing an organization meeting the requirements of a limited liability company;
(5) Having a company domicile.
Second, what are the legal risks of shell companies?
The legal risks of shell companies mainly include:
1, debt risk; Shell companies may have operated and may bear a lot of foreign debts, and they must bear the responsibility for these debts after investment and purchase;
2. Legal risks; Shell companies may have illegal acts, especially false capital contribution or withdrawing capital contribution after registering the company;
3. Wage and welfare risks of employees; Shell companies may owe a large number of employees wages and benefits;
4. Taxes and fees bear risks.