What are the requirements for establishing a subsidiary?

There are five conditions for the establishment of a subsidiary: the establishment of a subsidiary requires that the shares meet the statutory qualifications and the number of people, and the shareholders * * * jointly contribute and reach the statutory minimum capital. Shareholders * * * are required to formulate the Articles of Association, and subsidiaries shall determine the company name and form a company organization in the form of a limited liability company. Require subsidiaries to be established according to law.

1. The shares meet the statutory qualifications and the number limit.

As the sole investor (shareholder), the state may establish a wholly state-owned company; Companies and individuals, including rural villagers, resigned and resigned personnel; Retirees and other members, private entrepreneurs and individual industrial and commercial households permitted by national laws, regulations and policies may become shareholders of a limited liability company. The number of shareholders of a limited liability company shall be prescribed by law, ranging from two to fifty.

2. Shareholders * * * have the same capital contribution, reaching the statutory minimum capital.

The capital contribution of the shareholders of a limited liability company can be in cash, or in kind, industrial property rights, non-patented technology and land use rights. The investment in kind must be discounted, and the state-owned assets management department shall conduct accounting and confirmation, and handle the legal procedures for property transfer. Industrial property rights and non-patented technology are used as capital contribution, and the price is fixed, and the capital contribution shall not exceed 20% of the registered capital.

To invest in shares with the land use right, the land management department of the people's government at or above the county level must organize the assessment, report to the people's government at or above the county level for examination and approval, and handle the corresponding land use certificate.

The minimum registered capital of a limited liability company varies according to the company's business activities.

3. Shareholders * * * jointly formulate the Articles of Association.

The establishment of the articles of association is an important condition for the establishment of a company and a necessary procedure for the establishment of a limited liability company. The articles of association of a limited liability company is the basic provisions on the organization and operation of the company agreed by all shareholders, and it is a document to determine the rights of the company.

4. Determine the company name and form the company organization in the form of a limited liability company.

To establish a limited liability company, the words "limited liability company" must be marked in the company name, and shareholders shall bear limited liability to the extent of their capital contribution. Company institutions include shareholders' meeting, board of directors and board of supervisors.

5. Established according to law

After the articles of association are completed and the shareholders have fully contributed their capital, the company shall apply to the company registration authority for registration of establishment within the statutory time limit, and the representative designated by all shareholders or the agent entrusted by all shareholders shall submit the application for company registration.

Extended data:

According to the Company Law of People's Republic of China (PRC)

Article 26 The registered capital of a limited liability company is the capital contribution subscribed by all shareholders registered with the company registration authority.

Where laws, administrative regulations and decisions of the State Council have other provisions on the paid-in registered capital and the minimum registered capital of a limited liability company, those provisions shall prevail.

Article 80 Where a joint stock limited company is established by means of sponsorship, the registered capital shall be the total share capital subscribed by all sponsors registered at the company registration authority. Before the shares subscribed by the promoters have been paid in full, they may not raise them from others.

Where a joint stock limited company is established by offering, the registered capital shall be the total paid-in share capital registered with the company registration authority.

Where laws, administrative regulations and decisions of the State Council have other provisions on the paid-in amount of registered capital and the minimum amount of registered capital, those provisions shall prevail.

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