What do you mean by setting up a company and reorganizing the company?

Corporate reorganization means that the type of company registration has changed. When a limited liability company is changed into a joint stock limited company and its capital is increased by public offering of shares, it shall be handled according to law, and the total paid-in share capital after conversion shall not be higher than the company's net assets.

legal ground

Article 9 of the Company Law of People's Republic of China (PRC)

When a limited liability company is changed into a joint stock limited company, it shall meet the conditions of a joint stock limited company as stipulated in this Law. When a joint stock limited company is changed into a limited liability company, it shall meet the conditions of a limited liability company as stipulated in this Law. Where a limited liability company is changed into a joint stock limited company, or a joint stock limited company is changed into a limited liability company, the creditor's rights and debts before the company change shall be inherited by the changed company.

Article 95

When a limited liability company is changed into a joint stock limited company, the total amount of capitalization shall not be higher than the company's net assets. When a limited liability company is changed into a joint stock limited company, the public offering of shares for the purpose of increasing capital shall be handled according to law.