Chinese Mainland LLC

Limited Liability Company (LLC) is a type of corporation with independent legal person status. The liability of its shareholders is limited to their contributions and they are not liable for the company's debts. In mainland China, LLCs belong to the mixed ownership category, where the number of shareholders cannot exceed fifty. The board of directors has three or more members; a small company or one with few shareholders may have one director instead, who can also serve as the company's manager. LLCs must have one legal representative, named on the business license, but are not required to have local residents serving as directors, nor do they need a company secretary. There is no general minimum registered capital; only a law, an administrative regulation or a State Council decision can set one for a particular sector, and no capital verification report is filed at registration. The subscribed capital can be paid in at once or in instalments, in full within five years of establishment.