Can the company and its investors bear joint and several liability?

The investors of a sole proprietorship enterprise shall bear joint and several liabilities. According to the relevant laws and regulations, an investor who is a natural person with a legal enterprise name and necessary employees shall be recognized as a sole proprietorship enterprise, and the property of the enterprise shall be owned by the investor personally, and the investor shall bear unlimited liability for the debts of the enterprise with his personal property.

legal ground

Article 2 of the Law of People's Republic of China (PRC) Municipality on Wholly Owned Enterprises

The term "sole proprietorship enterprise" as mentioned in this Law refers to an enterprise as a legal person established in China according to 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 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.