The number of shareholders of a limited liability company clearly requires that a limited liability company be established by more than two shareholders and less than fifty shareholders. The reasons for limiting the number of shareholders of a limited liability company are:

1. A limited liability company shall be established on the basis of capital union, with at least two shareholders;

2. Limited liability companies have the factors of combining capital and combining people on the basis of mutual understanding and trust, that is, the combination of people, which requires that the number of shareholders should not be too large;

3. Limited liability companies do not offer shares publicly, and their management is relatively closed, so it is necessary to limit the number of shareholders; Limited liability companies are generally small in scale and limited in shareholders, which are suitable for company decision-making and operation.

4. The limit on the number of shareholders of a limited liability company includes both the initial shareholders who participate in the establishment of the company and the new shareholders who are added after the establishment of the company due to new capital contribution, capital contribution transfer, company merger and other reasons, that is, the total number of shareholders cannot exceed the maximum limit. The requirement for the minimum number of shareholders does not include the requirement for wholly state-owned companies, because the law has special provisions for wholly state-owned companies. It can be seen that the upper limit of the number of shareholders in a limited liability company is stipulated. According to the regulations, the number of shareholders is more than two and less than two hundred. For shareholders, their address needs to be in China. When the number of shareholders exceeds 200, it shall be audited by the relevant departments of the State Council.

legal ground

Company Law of the People's Republic of China

Article 24 A limited liability company shall be established by capital contribution of shareholders with less than 50 persons.

Article 37 The shareholders' meeting shall exercise the following functions and powers:

(1) To decide on the company's business policy and investment plan;

(2) Electing and replacing directors and supervisors who are not employee representatives, and deciding on the remuneration of directors and supervisors;

(3) Examining and approving the report of the board of directors;

(4) Examining and approving the reports of the board of supervisors or supervisors;

(5) To examine and approve the annual financial budget plan and final accounts plan of the company;

(VI) To examine and approve the company's profit distribution plan and loss recovery plan;

(7) To make resolutions on the increase or decrease of the registered capital of the company;

(8) To make resolutions on the issuance of corporate bonds.

(9) To make resolutions on the merger, division, dissolution, liquidation or change of corporate form of the company;

(10) Amending the Articles of Association.

(eleven) other functions and powers stipulated in the articles of association.

Where the shareholders unanimously agree to the matters listed in the preceding paragraph in writing, they may make a decision directly without convening a general meeting of shareholders, and all shareholders shall sign and seal the decision document.