Four rights distribution should be paid attention to when setting up a company in China

Why many law firms in China choose us:


Why many law firms in China choose us:

Guangdong Jielu Law Firm has represented more than 3000 such cases.

Guangdong Jielu Law Firm has represented and applied for bankruptcy of more than 2000 enterprises.


Why set up a company? It is to streamline, legalize and standardize the distribution of benefits. So what should we pay attention to when setting up a company? The first is the distribution of rights.

First, the distribution of equity. It involves 66.7%, that is, two-thirds of the absolute majority; 10%. Those who own this equity can apply for enterprise bankruptcy liquidation; 50%, no one can say. Whether these shares are owned by startups is crucial.

Second, the distribution of shares. What is the proportion of share distribution and earnings per share. These should be set up in advance in the company's articles of association. Who is qualified to decide the shares of the company, to whom the shares will be given, and at what price?

In addition, the distribution of voting rights. One vote veto can only be held by one person, not more than one person, otherwise, it means no veto. The major shareholders and actual controllers of the company should also firmly control the voting rights.

Also, the company's dividend rights. The dividend right can stimulate the creativity of the company. You can set up a "wager" with key employees, which is actually the company's incentive plan.

These are the four most important rights in the establishment and operation of the company. If the boss makes good use of them, he will fly.

Chat with us