The difference between a one-person company and a multi-person company lies in:
1. A one-person limited liability company is established with the investment of a natural person, and a multi-person company is established with the investment of more than two shareholders;
2. A one-person limited liability company does not have a shareholders' meeting. The shareholders' meeting of a one-person company is composed of all shareholders, and the shareholders' meeting is the authority of the company.
The legal risks of establishing a one-person company are as follows:
If the shareholders of a one-person company can't prove that the company's property is independent of the shareholders' own property and bear joint and several liabilities for the company's debts, it is more difficult to avoid risks than ordinary limited liability companies. In a case, in order to deny the company's independent personality and require shareholders to bear joint and several liability for the company's debts, the company's shareholders need to abuse the company's independent legal person status and shareholders' limited liability to avoid debts and seriously damage the interests of the company's creditors.
Legal basis: Article 57 of the Company Law of People's Republic of China (PRC).
The provisions of this section shall apply to the establishment and organization of a one-person limited liability company; Where there are no provisions in this section, the provisions in the first and second sections of this chapter shall apply.
A one-person limited liability company as mentioned in this Law refers to a limited liability company with only one natural person shareholder or one corporate shareholders.
Article 58
A natural person can only invest in the establishment of a one-person limited liability company.
A one-person limited liability company cannot invest in the establishment of a new one-person limited liability company.