Chinese Mainland LLC vs Ltd.
Legal Entity Comparison
Time of Update: 2026-03-31
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 consists of 3 to 13 members and may include an executive director who can also serve as the company's manager. LLCs are not required to appoint a legal representative or have local residents serving as directors, nor do they need a company secretary. The minimum registered capital requirement varies based on the number of shareholders and needs to be verified. For a single-member LLC, the minimum registered capital is 100,000 RMB, which needs to be fully contributed upfront. For LLCs with two or more members, the minimum registered capital is 30,000 RMB, which can be contributed in installments.
Chinese Mainland Legal Entity Comparison
Chinese Mainland Legal Entity Comparison
Basic Information
LLC
Ltd.
Ownership:
Consolidated Ownership
Ownership:
Consolidated Ownership
Limited Liability:
Positive
Limited Liability:
Positive
Publicly Participates In Capital Market:
Negative
Publicly Participates In Capital Market:
Positive
Shareholder / Director / Secretary Requirements
LLC
Ltd.
Requirements For Shareholders:
Cannot exceed fifty
Requirements For Shareholders:
Between two and two hundred people, with at least half of them residing within the territory of China
Requirements For Directors ::
The board of directors is composed of three to thirteen members. For limited liability companies with a small number of shareholders or a small scale, they can appoint an executive director without establishing a board of directors. The executive director can also serve as the company's manager.
Requirements For Directors ::
Five to nineteen people
Legal Representative Not Mandatory:
Positive
Legal Representative Not Mandatory:
Negative
Local Directors Not Mandatory:
Negative
Local Directors Not Mandatory:
Negative
Local Secretaries Not Mandatory:
Positive
Local Secretaries Not Mandatory:
Positive
Registered Capital Requirement
LLC
Ltd.
Minimum Registered Capital Requirement:
If there is only one shareholder, the minimum requirement is 100,000 RMB. If the number of shareholders is between 2-50 people, the minimum is 30,000 RMB.
Minimum Registered Capital Requirement:
No minimum requirement, a limited liability company established by way of raised funds, with registered capital being the total amount of paid-up capital.
Capital Injection Not Required:
Negative
Capital Injection Not Required:
Negative
Capital Injection Requirement:
1. The minimum registered capital for a single-person limited company is 100,000 yuan, which must be fully contributed at one time;
2. For a limited company with two or more shareholders, the minimum registered capital is 30,000 yuan, which can be contributed in installments. The initial contribution should not be less than 20%, and the remaining registered capital can be in place within 2 years. For investment companies, the capital can be in place within 5 years.
2. For a limited company with two or more shareholders, the minimum registered capital is 30,000 yuan, which can be contributed in installments. The initial contribution should not be less than 20%, and the remaining registered capital can be in place within 2 years. For investment companies, the capital can be in place within 5 years.
Capital Injection Requirement:
Shareholders can contribute their registered capital in the form of currency or evaluated intangible assets, among which the monetary capital shall not be less than 30% of the total registered capital of the company.
Memo
LLC
Ltd.
Memo:
Memo:
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