The term "one-person limited liability company" as mentioned in China Company Law refers to a limited liability company with only one natural person shareholder or legal person shareholder. The minimum amount of registered capital of a one-person limited liability company shall be RMB 100, 000 yuan (approx. USD 12,500). The shareholder shall, in a lump sum, pay the capital contributions as specified in the articles of association.

A one-person limited liability companies shall, in the company registration, give a clear indication that it is solely-funded by one natural person or legal person and the same shall be specified in the business license of the company, make a financial statement by the end of every fiscal year, which shall be subject to audit by an accounting firm.

The New Company Law (2006) permits for the first time the formation of one-person limited liability companies. But if the shareholder of a one-person limited liability company is unable to prove that the property of the one-person limited liability company is independent from his own property, he shall bear joint liabilities for the debts of the company.

This can prevent the sole shareholder from taking advantage of the company's assets for his/her personal use, so as to protect the obligee. But this make the burden of proof infinite escalating to the One-person Limited Liability Companies. So I hope the court may determine the burden of proof according to the principle of fairness and the principle of honesty and credit and take such elements as the ability to produce evidences into consideration.