Legal basis: People's Republic of China (PRC) Company Law.
Article 76 The establishment of a joint stock limited company shall meet the following conditions:
(1) The promoters meet the quorum;
(2) It has the total amount of capital subscribed or paid-in by all promoters in accordance with the articles of association;
(3) The issuance and offering of shares comply with the law;
(4) The promoters shall formulate articles of association, which shall be adopted by the founding meeting;
(5) Having a company name and establishing an organization meeting the requirements of a joint stock limited company;
(6) Having a company domicile.
Article 80 Where a joint stock limited company is established by means of sponsorship, the registered capital shall be the total share capital subscribed by all sponsors registered at the company registration authority. Before the shares subscribed by the promoters have been paid in full, they may not raise them from others.
Where a joint stock limited company is established by offering, the registered capital shall be the total paid-in share capital registered with the company registration authority.
Where laws, administrative regulations and decisions of the State Council have other provisions on the paid-in amount of registered capital and the minimum amount of registered capital, those provisions shall prevail.
Article 83 Where a joint stock limited company is established by means of sponsorship, the promoters shall fully subscribe to the shares stipulated in the articles of association in writing and pay the capital contribution in accordance with the provisions of the articles of association. Where non-monetary property is used as capital contribution, the formalities for the transfer of property rights shall be handled according to law.
If the promoters fail to make capital contributions in accordance with the provisions of the preceding paragraph, they shall be liable for breach of contract in accordance with the promoters' agreement.
After the promoters have fully subscribed the capital contribution stipulated in the articles of association, they shall elect the board of directors and the board of supervisors, and the board of directors shall submit other documents stipulated in the articles of association and laws and administrative regulations to the company registration authority to apply for establishment registration.