China’s top legislature adopted the Draft of the Amendment of the Corporate Law Thursday, with an eye-catching lifting of ban on the setting-up of one-person limited companies…
According to the newly-adopted amended law, one person, either a natural person or a legal person, is allowed to apply for opening a limited company with a minimum capital of 100,000 yuan (about 12,345 US dollars).
The amended law also prescribes that the owner of the single-person company should pay the investment capital at one time. It is prohibited to open a second one of the kind by the same person.
It should be made clear whether the one-person company is opened by a natural person or a legal person during the process of registration and in its charter, the new amendment says.
The one-person limited company should submit its audit report at the end of a year to an accounting firm. The owner who fails to prove his/her assets is independent from the assets of the company should take responsibility for the company’s losses, the amendment says.
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