Chapter I General Provisions Article 1 This Law is formulated in accordance with the Constitution for the purpose of regulating the behavior of sole proprietorship enterprises, protecting the legitimate rights and interests of investors and creditors of sole proprietorship enterprises, maintaining social and economic order and promoting the development of socialist market economy. Article 2 The term "sole proprietorship enterprise" as mentioned in this Law refers to a business unit established in China in accordance with this Law, which is invested by a natural person, and its property is owned by the investor, who shall bear unlimited liability for the debts of the enterprise with his personal property. Article 3 A sole proprietorship enterprise shall take the place where its main office is located as its domicile. Article 4 When engaging in business activities, a sole proprietorship enterprise must abide by laws and administrative regulations, follow the principle of good faith, and may not harm the public interests.

A sole proprietorship enterprise shall fulfill its tax payment obligations according to law. Article 5 The state protects the property and other lawful rights and interests of a sole proprietorship enterprise according to law. Article 6 A sole proprietorship enterprise shall recruit employees according to law. The legitimate rights and interests of workers are protected by law.

The employees of a sole proprietorship enterprise shall establish trade unions according to law, and the trade unions shall carry out activities according to law. Article 7 party member is a Chinese producer in a sole proprietorship enterprise and conducts its activities in accordance with the articles of association of the Chinese producer. Chapter II Establishment of a sole proprietorship enterprise Article 8 The establishment of a sole proprietorship enterprise shall meet the following conditions:

(1) The investor is a natural person;

(2) Having a legal enterprise name;

(3) The amount of capital contribution declared by the investor;

(4) Having a fixed place for production and business operation and necessary conditions for production and business operation;

(5) Having necessary employees. Article 9 To apply for the establishment of a sole proprietorship enterprise, the investor or his entrusted agent shall submit the application for establishment, the identity certificate of the investor, the certificate of use of the production and business premises and other documents to the registration authority where the sole proprietorship enterprise is located. When an entrusted agent applies for registration of establishment, it shall issue the power of attorney of the investor and the legal certificate of the agent.

A sole proprietorship enterprise shall not engage in business prohibited by laws and administrative regulations; To engage in business that must be reported to the relevant departments for examination and approval according to laws and administrative regulations, the approval documents of the relevant departments shall be submitted when applying for establishment registration. Article 10 An application for the establishment of a sole proprietorship enterprise shall contain the following items:

(1) The name and domicile of the enterprise;

(2) The name and domicile of the investor;

(3) The amount and mode of investment made by investors;

(4) Business scope. Article 11 The name of a sole proprietorship enterprise shall be consistent with its responsibility form and business. Article 12 The registration authority shall, within 15 days from the date of receiving the application documents for establishment, register those who meet the requirements stipulated in this Law and issue a business license; If it does not meet the requirements stipulated in this law, it shall not be registered, and a written reply shall be given to explain the reasons. Article 13 The date of issuance of the business license of a sole proprietorship enterprise shall be the date of establishment of the sole proprietorship enterprise.

Before obtaining the business license of a sole proprietorship enterprise, investors shall not engage in business activities in the name of a sole proprietorship enterprise. Article 14 When a sole proprietorship enterprise establishes a branch, the investor or his entrusted agent shall apply to the registration authority where the branch is located for registration and obtain a business license.

After the branch is approved for registration, it shall report the registration information to the registration authority of the sole proprietorship enterprise to which the branch belongs for the record.

The civil liability of a branch shall be borne by the sole proprietorship enterprise that established the branch. Article 15 If the registered items of a sole proprietorship enterprise change during its existence, it shall, within 15 days from the date of making the change decision, apply to the registration authority for registration of change according to law. Chapter III Investor and Affairs Management of a sole proprietorship enterprise Article 16 A person who is prohibited from engaging in profit-making activities by laws and administrative regulations may not apply for the establishment of a sole proprietorship enterprise as an investor. Article 17 Investors of a sole proprietorship enterprise shall enjoy the ownership of the enterprise property according to law, and their related rights may be transferred or inherited according to law. Article 18 When applying for the registration of enterprise establishment, the investor of a sole proprietorship enterprise clearly takes the property owned by his family as his personal contribution and assumes unlimited liability for the debts of the enterprise with the property owned by his family. Article 19 Investors of a sole proprietorship enterprise may manage enterprise affairs by themselves, or entrust or employ other persons with civil capacity to manage enterprise affairs.

Where an investor entrusts or employs others to manage the affairs of a sole proprietorship enterprise, it shall sign a written contract with the trustee or employee, specifying the specific contents of the entrustment and the scope of the rights granted.

The trustee or employee shall, in accordance with the contract signed with the investor, fulfill the obligation of honesty and diligence and be responsible for the affairs management of the sole proprietorship enterprise.

The investor's restriction on the functions and powers of the trustee or employee shall not be against a bona fide third party. Article 20 The personnel entrusted or employed by investors to manage the affairs of a sole proprietorship enterprise shall not commit any of the following acts:

(a) taking advantage of his position to ask for or accept bribes;

(2) taking advantage of his position or work to occupy the property of the enterprise;

(3) misappropriating enterprise funds for personal use or lending them to others.

(4) Opening an account for enterprise funds in the name of an individual or in the name of others without authorization;

(5) Providing guarantee with enterprise property without authorization;

(6) engaging in business that is competitive with the enterprise without the consent of the investor;

(seven) without the consent of the investor, enter into a contract or conduct a transaction with the enterprise;

(8) Transferring enterprise trademarks or other intellectual property rights to others without the consent of investors;

(9) divulging the business secrets of the enterprise;

(ten) other acts prohibited by laws and administrative regulations.