Is limited company a state-owned enterprise?

Legal analysis: A limited liability company may be a state-owned enterprise or a private enterprise. A limited liability company is an organizational form of a company. According to China's company law, there are two forms of company organization in China: joint stock limited company and limited liability company. That is to say, in China, the corresponding concept of a limited liability company is a joint stock limited company. State-owned enterprises emphasize the issue of controlling shares of companies. As long as state-owned capital holds a controlling position, it is a state-owned enterprise. On the other hand, if non-state-owned capital holds a controlling position, it is not a state-owned enterprise.

Legal basis: Article 26 of the Company Law states that the registered capital of a limited liability company is the capital contribution subscribed by all shareholders registered in the company registration authority.

Where laws, administrative regulations and decisions of the State Council have other provisions on the paid-in registered capital and the minimum registered capital of a limited liability company, those provisions shall prevail.

Article 27 of the Company Law: Shareholders may make capital contributions in cash, or in kind, intellectual property rights, land use rights and other non-monetary property that can be valued in money and transferred according to law. However, except for the property that cannot be used as capital contribution as stipulated by laws and administrative regulations.

Non-monetary property as capital contribution shall be evaluated and verified, and its value shall not be overestimated or underestimated. Where there are provisions in laws and administrative regulations on evaluation and pricing, those provisions shall prevail.