An enterprise with only one shareholder belongs to a sole proprietorship enterprise and is established by one shareholder. A sole proprietorship enterprise refers to an enterprise that is operated, owned and controlled by an individual, bears operational risks and enjoys all operational benefits. A sole proprietorship enterprise operating in the form of sole proprietorship has unlimited economic responsibility, and the borrower can seize the owner's personal property when he goes bankrupt.
legal ground
Article 2 of the Law of People's Republic of China (PRC) Municipality on Wholly Owned Enterprises
The term "sole proprietorship enterprise" as mentioned in this Law refers to an enterprise as a legal person established in China according to this Law, which is invested by a natural person, and its property is owned by the investor, who shall bear unlimited liability for the debts of the enterprise with his personal property.