According to the Company Law of People's Republic of China (PRC):
Article 57 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 legal person in the company registration and indicate it in the company business license.
Article 60 The articles of association of a one-person limited liability company shall be formulated by the shareholders.
Article 61 A one-person limited liability company shall not set up a shareholders' meeting. When making the decisions listed in the first paragraph of Article 38 of this Law, the shareholders shall make them in written form, signed by the shareholders and kept in the company.
Extended data:
Shareholders of a limited company may entrust SASAC through natural persons, legal persons, unincorporated organizations, trade unions and the government. Then a sole proprietorship enterprise is an unincorporated organization and can be a shareholder of the company. However, the shareholders of a one-person limited liability company are natural persons and legal persons. In other words, the shareholders of a one-person company may not be wholly-owned enterprises.
Where a company invests in other enterprises or provides guarantees for others, it shall be decided by the board of directors or the shareholders' meeting in accordance with the articles of association; Where the articles of association stipulate limits on the total amount of investment or guarantee and the amount of individual investment or guarantee, it shall not exceed the prescribed limits.
The company must be approved by the shareholders' meeting or the shareholders' representative meeting. Shareholders specified in the preceding paragraph or shareholders controlled by actual controllers specified in the preceding paragraph shall not participate in voting on matters specified in the preceding paragraph. The voting shall be passed by more than half of the voting rights held by other shareholders present at the meeting.
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