What is the difference between a one-person limited liability company and a wholly-owned subsidiary?

Although a one-person limited liability company and a wholly-owned subsidiary are legal persons, their levels are different. A one-person limited liability company may not set up a wholly-owned subsidiary alone, but may set up a joint venture subsidiary (as a shareholder of the investor) or a branch (without legal person status). A one-person limited liability company, founded by one person, is a full-responsibility company and cannot set up a second company. And a natural person can only build one. A wholly-owned subsidiary refers to a subsidiary wholly owned or controlled by a single parent company. The parent company can set up a wholly-owned subsidiary in two ways: the first is to set up a new company from scratch and build brand-new production equipment (such as factory buildings, offices and machinery and equipment). ); The second is to buy existing companies and use the company's equipment for their own use. Whether to set up an international subsidiary through acquisition or new construction depends largely on the business activities planned by the parent company. For example, when a parent company sets up a subsidiary to produce the latest high-tech products, it usually needs to build a new factory, because it is difficult to reach this cutting-edge technical level by relying on local conditions. In other words, we can easily find many companies that make small things like bottles and cans in most target markets, but few companies produce the most advanced computer chips. The main disadvantage of re-establishing subsidiaries is that it takes too long, because it takes a lot of time to build new equipment, hire and train workers and develop products. The wholly-owned subsidiary system is just the opposite of the internal company system: the legal status of the wholly-owned subsidiary is a legal person, but it only has the authority of the business department system. The assessment method of wholly-owned subsidiaries is the profit center responsibility system, so the wholly-owned subsidiary system is actually the business department system. One-person limited liability company, also known as "one-person company", "sole proprietorship company" and "individual joint stock limited company", refers to a limited liability company in which one shareholder (natural person or legal person) holds all the capital contribution of the company. In essence, "one-man company" is particularly common in western countries, because the company laws of many States stipulate that directors must own a certain number of company shares, that is, qualified shares, so most of the shares of many companies are owned by one shareholder, and a very small proportion of the shares are owned by company directors. 1. According to the nature of the company, a one-person limited liability company shall bear limited liability to the extent of its capital contribution, and a sole proprietorship enterprise shall bear unlimited liability. However, if the shareholders of a one-person limited liability company privately own hotchpot in the company's property and cannot prove that the company's property belongs to the shareholders' own property, they shall be jointly and severally liable for the company's debts. 2. In operation and management, the control of one-person limited liability company is stricter, and it is necessary to set up articles of association, provide financial statements and accept annual financial audit. In terms of taxation, a sole proprietorship enterprise only needs to pay personal income tax, and a one-person limited liability company needs to pay corporate income tax and shareholder personal income tax.