A limited liability company is an economic organization established by the contribution of less than 50 shareholders. Each shareholder shall bear limited liability for the company with the amount of capital contribution subscribed, and the company shall bear liability for its debts with all its assets. The liability of limited liability shall not exceed the registered capital.
Legal basis: Branch companies can be established in Article 14 of People's Republic of China (PRC) Company Law. The establishment of a branch company shall apply to the company registration authority for registration and obtain a business license. A branch company does not have legal person status, and its civil liability shall be borne by the company.
A company may set up subsidiaries, which have legal personality and independently bear civil liabilities according to law.