Limited company is the most important organizational form for Chinese enterprises to implement corporate system, which refers to registration according to the Regulations of the People's Republic of China on the Administration of Company Registration.
Its advantage is that the establishment procedure is relatively simple, and there is no need to issue an announcement or account number. In particular, the company's balance sheet is generally not open, and the company's internal institutions are flexible.
Its disadvantage is that it is impossible to issue shares publicly, and the scope and scale of funds raised are generally small, which is difficult to meet the needs of large-scale production and operation activities. Therefore, the form of limited liability company (limited company) is generally suitable for small and medium-sized non-joint-stock companies.
For entrepreneurship, limited liability company is a more suitable enterprise type, and most investment and financing schemes and VIE structures are designed based on limited liability company.
Extended data:
According to Article 20 of the Regulations of the People's Republic of China on the Administration of Company Registration, a limited liability company shall be established with the company registration authority by a representative designated by all shareholders or an agent entrusted by * * *. To establish a wholly state-owned company, the state-owned assets supervision and administration institution of the people's government at the corresponding level authorized by the State Council or the local people's government shall be the applicant to apply for registration of establishment.
Where laws, administrative regulations or decisions of the State Council stipulate that the establishment of a limited liability company must be approved, it shall apply to the company registration authority for establishment registration within 90 days from the date of approval; Where an application for registration of establishment is overdue, the applicant shall report to the approval authority to confirm the validity of the original approval document or submit it for approval separately.
To apply for the establishment of a limited liability company, the following documents shall be submitted to the company registration authority:
(1) An application for registration of establishment signed by the legal representative of the company;
(2) Certificates of the designated representatives or entrusted agents of all shareholders;
(3) Articles of association;
(four) the qualification certificate of shareholders or the identity certificate of natural persons;
(5) Documents stating the names and domiciles of the directors, supervisors and managers of the company, and certificates of appointment, election or employment;
(6) The post-holding documents and identity certificates of the legal representative of the company;
(7) Notice of pre-approval of enterprise name;
(eight) the company's domicile certificate;
(9) Other documents required by the State Administration for Industry and Commerce.
Where laws, administrative regulations or decisions of the State Council stipulate that the establishment of a limited liability company must be approved, relevant approval documents shall also be submitted.
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