Subsidiary（子公司)vs.Branch(分公司)CompanylawArticle13Acompanymayestablishsubsidiarieswhichenjoythestatusofanenterpriselegalpersonandshallbeindependentlyresponsiblefortheirowncivil liabilitiesAcompanymaysetupbranches.Abranchshall notenjoythestatusofanenterprise legal personand itscivil liabilitiesshall bebornebythecompany
Subsidiary(子公司)vs. Branch(分公司) Company law Article 13 A company may establish subsidiaries which enjoy the status of an enterprise legal person and shall be independently responsible for their own civil liabilities. A company may set up branches. A branch shall not enjoy the status of an enterprise legal person and its civil liabilities shall be borne by the company
4.2 The establishment and alteration of a company4.2.1Theestablishmentofacompany4.2.2ThealterationofacompanyatatodeletestartupanalysisCHANGEteamworkO/
4.2 The establishment and alteration of a company 4.2.1 The establishment of a company 4.2.2 The alteration of a company
4.2.1The establishment ofa companyMethodsofCompanyFormationRegistrationofaCompany
4.2.1 The establishment of a company ◦ Methods of Company Formation ◦ Registration of a Company
MethodsofCompanyFormationInChina,toestablish acompanyfroma strategic perspective,therePROMOTIONaretwoprimarymethodsforcompany establishment:PromotionFlotationFLOTATION COSTTOC
Methods of Company Formation ◦ In China, to establish a company, from a strategic perspective, there are two primary methods for company establishment: ◦ Promotion ◦ Flotation
Promotion（发起设立）Establishingacompanythroughpromotioninvolvesthepromoterssubscribingtoallthe sharestobeissuedbythecompany.Insimplertermsthecompanyis established byraisingfundsfrom its initiatorswithoutpubliclysolicitingcapitalfromthegeneralpublic.Theprocessbeginswithconceptualizingthebirthofthe companyanddefining its purpose.The individualswho conceivethecompanyand invest the initialfunds areknownasthepromoters.Thepromotersenterintopreliminarycontractswithvendorsandmakearrangementsforthepreparation,advertisementandcirculationofprospectusandplacementofcapital.So,theentireprocessinvolvedinthismethodofpromotionbythepromotersoftheCompanyisknownas‘PromotionofaCompany
Promotion（发起设立） ◦ Establishing a company through promotion involves the promoters subscribing to all the shares to be issued by the company. In simpler terms, the company is established by raising funds from its initiators without publicly soliciting capital from the general public. ◦ The process begins with conceptualizing the birth of the company and defining its purpose. ◦ The individuals who conceive the company and invest the initial funds are known as the promoters. The promoters enter into preliminary contracts with vendors and make arrangements for the preparation, advertisement and circulation of prospectus and placement of capital. ◦ So, the entire process involved in this method of promotion by the promoters of the Company is known as ‘Promotion of a Company’