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Q&A on Legal Representative of Chinese Companies
| Q: |
Is it a must for a Chinese company to have a legal representative? |
| A: |
Yes. According to the Company Law of the PRC, a company must appoint one legal representative.
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| Q: |
Can a Chinese company have several legal representatives? |
| A: |
It’s not allowed. A Chinese company only can have one legal representative. |
| Q: |
Who can be appointed as the legal representative of a Chinese company? |
| A: |
According to the Company Law of the PRC, a company’s legal representative shall be either a director or (general) manager who represents the company to execute corporate affairs.
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| Q: |
The legal representative’s name is a statutory registered item of a Chinese company or not? |
| A: |
Yes. The name of the legal representative is a statutory registered item of the company. The name of the legal representative will be written on the company’s business license after registration.
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| Q: |
The change of legal representative must be registered with the company registration authority or not? |
| A: |
According to the Company Law of the PRC, if there is a change in the registered items (for example, the legal representative) of a company, it shall be registered with the company registration authority in accordance with the law. Without registration, it is not allowed to confront third parties in good faith.
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Q: |
Can a foreigner be appointed as the legal representative of a Chinese domestic company? |
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A: |
Yes. The PRC laws and regulations do not have restrictions on the nationality of the legal representative. |
| Q: |
Can an employee be appointed as the legal representative of a Chinese company? |
| A: |
It is not allowed unless the employee also serve as a director or manager who represents the company to execute corporate affairs.
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Q: |
Can the legal representative, director and manager of a Chinese company be the same person? |
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A: |
Yes. The company’s position of legal representative, director and manager can be held by the same person. |