Pick the right legal form before opening: sole proprietors and partners are liable to the end, and only a limited company is truly "limited"
- High value
- Evidence A
- Saves money
- Costs a little
- Takes some hours
- No willpower
In plain words
Sole proprietors and general partners are liable to the end, repaying however much is owed. Shareholders of a limited company are liable only for the amount they promised at registration. But whatever amount you promised must actually be paid in within 5 years: if you entered 1,000,000 (100万) CNY, you may owe 1,000,000 CNY. If the company's accounts and your own household accounts are mixed together, the "limited" protection can also fail.
Mentioned in
Translated from the Chinese original. Original book, section 12, tip 3. This section describes legal rules, mostly mainland China’s. It is general information, not legal advice; for your own case, talk to a lawyer. Content may be out of date and rules differ by place. When you actually deal with an agency, a doctor or a court, follow what local officials, doctors and lawyers tell you. Disclaimer