The registered capital of a one-person company needs to be in place at one time; A natural person can only register a one-person limited liability company, and the registered company cannot invest in the establishment of a new one-person limited liability company; A one-man company cannot prove that its own property is independent of the company and is jointly and severally liable for the company's debts. The registered capital of a one-person company is at least RMB 654.38+10,000, and that of a multi-person company is at least RMB 30,000.
2. Different taxes
Individuals pay personal income tax, 25% of corporate income tax is paid for the profits of limited companies, and 20% of personal income tax is paid for the profits distributed by individuals. Generally speaking, the personal tax burden is small. If the shareholders of a one-person limited liability company cannot prove that the company's property is independent of the shareholders' own property, they shall be jointly and severally liable for the company's debts.
3. The preparation of accounting reports is different.
A one-person company shall prepare financial and accounting reports in each fiscal year, which shall be audited by an accounting firm established according to law. In practice, multi-person limited companies have no mandatory provisions on this at least in the annual inspection of industry and commerce. When a debt dispute occurs, if the shareholders of a one-person limited liability company cannot prove that the company's property is independent of their own property, they shall be jointly and severally liable for the company's debts.
Not all industries can declare a one-man company. The business scope of one-man company does not include pre-approval, such as catering, entertainment, internet cafes, travel agencies and other industries need pre-approval, and these industries cannot declare and register one-man company.
4. Different definitions
A one-person limited liability company refers to a limited liability company with only one natural person shareholder or one corporate shareholders (Article 57 of the Company Law). A one-person limited liability company is referred to as a one-person company, a wholly-owned company or a joint stock limited company for short. It refers to a limited liability company in which a shareholder (natural person or legal person) holds all the capital contributions of the company.
A multi-person limited liability company, also known as a limited liability company, is an economic organization established by shareholders with less than 50 employees. Each shareholder shall bear limited liability to the company to the extent of the capital contribution subscribed, and the enterprise as a legal person shall bear full responsibility for the company's debts with all its assets. Limited liability companies include wholly state-owned companies and other limited liability companies.
References:
Baidu encyclopedia-one person limited liability company