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[ESTABLISHING A BUSINESS ENTITY IN CHINA]
shall be followed by all CLSs.
their capital contributions in the partnership agreement.
3) Partnership
Partnerships in China do not differ much from partnerships in many other jurisdictions. A partnership may be established in the form of either a general partnership or a limited partnership. It does not have a legal personality and bears unlimited liabilities to its creditors. The partnership is nevertheless a popular structure choice as it offers more flexibility to the partners in the governance and operation thereof. a) General Partnership - Unlimited liability
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Governance A general
partnership is governed by the partners’ meeting. The specifics of the partners’ meeting may be stipulated in the partnership agreement, including the proceedings, the matters requiring approval of the partners, and the required votes, etc. Limited or unlimited liability A limited partnership shall have at least one general partner and one limited partner. The liability of a limited partner to the creditors of the limited partnership is limited to the amount of its capital commitment, while the liability of the general partner is unlimited.
b) Limited Partnership -
A general partnership shall have at least two partners, each bearing joint and several unlimited liability to the creditors of the general partnership.
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Capital
commitment
and
contribution
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Upon the partnership shall register the aggregate capital commitment of all formation, partners, as well as the capital commitment of each partner. Any subsequent increase or reduction of the capital commitment of a partner requires an amendment of the partnership’s registration information. Except otherwise required by law, the partners may schedule as
- Capital
commitment
and
contribution; governance The capital commitment and contribution by the partners, and the governance of a limited partnership are similar to those of a general partnership, as introduced in subsection a) above. Carryout of partnership affairs By and large, the general partner shall only conduct the affairs of a limited partnership. If a limited
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ILN Corporate Group – Establishing a Business Entity Series
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