There are several ways to set up a company.

Legal analysis: there are two ways to set up a company: initiation and fundraising. All the capital contributions for initiating the establishment shall be paid by the sponsors, the capital contributions for offering the establishment shall be paid by the sponsors, and the rest shall be raised. To set up a joint stock limited company by offering, you only need to invest less money to gather more funds from the society, so that the company can quickly gather a larger amount of capital.

Legal basis: People's Republic of China (PRC) Company Law.

Article 77 A joint stock limited company may be established by means of initiation or offering. A promoter refers to a company established by the promoters who subscribe for all the shares that should be issued by the company. The establishment by public offering means that the promoters subscribe for part of the shares that should be issued by the company and raise the remaining shares to the public or specific objects to establish the company.

Article 84 Where a joint stock limited company is established by offering, the shares subscribed by the promoters shall not be less than 35% of the total shares of the company. However, if there are other provisions in laws and administrative regulations, those provisions shall prevail.