Special Requirement of Limited Liability Company for Sole owner

A sole limited liability company refers to those limited liability companies which have only a natural person or a legal person shareholder.

Under the "Company Law", there is a special provision governing these sole limited liability companies :-

(1) Article 59:      A sole limited liability company's minimum registered capital requirement is RMB 100,000.   Shareholders should pay in one time the stated capital contribution set out in its Articles of Association.  A natural person is allowed to establish only one sole limited liability company.   That means, a person who already has limited liability company, cannot re-invest in the establishment of another new sole limited liability company.

(2) Article 60:      A limited liability company shall be indicated clearly in the registration whether it is owend by a natural person or legal entity and set out in the company the business license thereof.

(3) Article 61:      The memorandum and articles of association of a sole limited liability company shall be formulated by its shareholder.

(4) Article 62:      A sole limited liability company has no shareholders' meeting.   If shareholder makes decision under Article 38, it must be in writing and signed by the shareholder as well as kept at the company.

(5) Article 63:      A sole limited liability company shall in each fiscal year, prepare a financial accounting report which is audited by an audit firm.

(6) Article 64:     Shareholder of a sole limited liability company cannot prove that the property is independent from his own property.  It should be jointly liable for the debts of the company.