What does credit guarantee mean?

A credit guarantee limited liability company is a company established by less than 50 shareholders. Shareholders * * * have formulated the Articles of Association, registered in accordance with the law, and engaged in business activities such as providing credit guarantee for customers. Under normal circumstances, the shareholders of a company are liable for the debts of the company to the extent of their subscribed capital contribution.

legal ground

Article 23 of the Company Law of People's Republic of China (PRC)

The establishment of a limited liability company shall meet the following conditions:

(1) Shareholders meet the 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.

Article 24

A limited liability company shall be established by capital contribution of shareholders with less than 50 persons.