A joint stock company may be established by promotion or by share offering.

Establishment by promotion means that the promoters establish the company by subscribing for all shares to be issued upon incorporation.

Establishment by share offering means that the promoters subscribe for part of the shares to be issued upon incorporation and the remaining shares are offered to specified persons or to the public.

A joint stock company shall have no fewer than one and no more than 200 promoters, and more than half of the promoters shall be domiciled within the People’s Republic of China.