2. Legal risks. There may be illegal acts in "shell companies", especially the act of making false capital contributions or withdrawing capital contributions after registering the company.
3. Employee salary and welfare risks. "Shell companies" may be in arrears with a large number of employees' wages and benefits.
4. Taxes and fees bear risks.
Legal basis: People's Republic of China (PRC) Company Law.
Article 12 The business scope of a company shall be stipulated in the articles of association and registered according to law. A company may amend its articles of association and change its business scope, but it shall register the change.
Projects that are required to be approved by laws and administrative regulations in the company's business scope shall be approved according to law.
Article 13 The legal representative of a company shall be the chairman, executive director or manager in accordance with the articles of association, and shall be registered according to law. Where the legal representative of the company changes, it shall go through the registration of change.