Legal analysis
According to the provisions of relevant laws, it is explicitly required that a limited liability company be established by shareholders with less than 50 members. The main factors considered in limiting the number of shareholders of a limited liability company are: (1) to form a limited liability company on the basis of capital union, and the number of shareholders shall not be less than two; (2) Limited liability companies have the factors of combining capital and combining people on the basis of mutual understanding and trust, that is, the factors of combining people, which require that the number of shareholders should not be too large; (3) Limited liability companies do not publicly issue shares, and their management is relatively closed, which limits the number of shareholders; Limited liability companies are generally small in scale and limited in shareholders, which are suitable for company decision-making and operation; (4) The limit on the number of shareholders of a limited liability company includes not only the initial shareholders who participated in the establishment of the company, but also the new shareholders who were added after the establishment of the company due to new capital contribution, transfer of capital contribution, company merger and other reasons, that is, the total number of shareholders cannot exceed the maximum limit. The requirement for the minimum number of shareholders does not include the requirement for wholly state-owned companies, because there are special provisions for wholly state-owned companies in law.
legal ground
Company Law of the People's Republic of China
Article 24 A limited liability company shall be established by capital contribution of shareholders with less than 50 persons.
Article 23 The establishment of a limited liability company shall meet the following conditions: (1) The number of shareholders shall reach a 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.