legal ground
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.
Article 59
A one-person limited liability company shall indicate the sole proprietorship of a natural person or a legal person in the company registration, and indicate it in the company business license.
Article 63
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.