The Individual Proprietorship Enterprises Law was promulgated in 1999 and entered into force on January 1, 2000.
There are 48 articles in total.
The key points are as follows:
1.The individual proprietorship enterprise is established within China and invested in by one natural person and the property of which is personally owned by the investor who shall assume unlimited liabilities for the debts of the enterprise with his own property.
2.The investor of an individual proprietorship enterprise who, while applying for registering the establishment of the enterprise, clearly indicates that the common property of his family is the capital contributed shall assume unlimited liabilities for the debts of the enterprise with the common property of his family.
- Where the property of an individual proprietorship enterprise is insufficient for the liquidation, the investor shall pay off the debts with his other property, when an individual proprietorship enterprise is dissolved.