Q:
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What is a one-person limited company in China?
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A:
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According to the Company Law of the PRC, one-person limited company refers to a limited liability company with only one natural person shareholder or legal person shareholder.
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Q:
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Can a nature person set up several one-person limited companies in China?
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A:
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According to the Company Law of the PRC, one natural person is allowed to establish merely a one-person limited liability company.
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Q:
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Can a one-person limited company established by a natural person to set up a new one-person limited company in China?
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A:
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It is not allowed. According to the Company Law of the PRC, a one-person limited company established by a natural person cannot set up any more one-person limited liability company.
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Q:
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Is it compulsory for a one-person limited company in China to conduct an audit annually?
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A:
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According to the Company Law of the PRC, a one-person limited liability company shall make a financial report by the end of every fiscal year and have the report audited by a CPA firm.
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Q:
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Under what circumstances the shareholder of a one-person limited company shall assume joint and several liability for the company's debts?
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A:
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According to the Company Law of the PRC, if the shareholder of a one-person limited liability company is unable to prove that the property of the one-person limited liability company is independent from his/her own property, he/she shall bear joint liabilities for the debts of the company.
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