According to the Company Law of People's Republic of China (PRC), the number of promoters of a limited liability company shall not be less than 2 and not more than 50. The promoters shall sign the Articles of Association and the list of contributors in written form and report them to the relevant departments for the record. After the company is established, the promoters can become shareholders and hold shares in the company. In addition, the law also makes detailed provisions on the qualifications, rights and responsibilities of promoters. The promoters shall not merge or split a limited liability company by false means, and shall not violate the relevant laws, regulations and articles of association of the state to harm the interests of the company or the rights and interests of other investors. Sponsors should also bear corresponding obligations and responsibilities, including: capital contribution, undertaking business risks, and fulfilling information disclosure and decision-making procedures. When the company has problems such as losses and debts, it may also require the promoters to bear joint and several liabilities according to a certain proportion.
What if a limited liability company has only one sponsor? According to the Company Law, there shall be no less than 2 promoters of a limited liability company. If there is only one sponsor, it is necessary to seek other suitable forms of corporate organization. For example, you can consider operating in the form of sole proprietorship or partnership.
As a common form of enterprise organization, limited liability company has a wide range of applications. The promoters shall abide by the relevant laws and regulations of the state, conscientiously perform their duties such as capital contribution and information disclosure, and at the same time clarify their rights and responsibilities and bear corresponding risks.
Legal basis:
Article 34 of the Company Law of People's Republic of China (PRC) A limited liability company shall have no less than two promoters and no more than fifty promoters.