A partnership refers to an enterprise established by several natural persons with the same amount of capital contribution. It does not have the qualification of a legal person, nor is it limited liability, but it bears unlimited joint liability among partners.
People's Republic of China (PRC) partnership enterprise law
Article 2 The term "partnership enterprise" as mentioned in this Law refers to the general partnership enterprise and limited partnership enterprise established in China by natural persons, legal persons and other organizations in accordance with this Law.
A general partnership consists of general partners, who are jointly and severally liable for the debts of the partnership. Where this Law has special provisions on the liability form of general partners, such provisions shall prevail.
Article 4
The partnership agreement shall be concluded in writing by all partners through consultation according to law.
Article 16
Partners may contribute their capital in cash, in kind, intellectual property rights, land use rights or other property rights, or they may contribute their capital in labor services.
Article 33 The profit distribution and loss sharing of a partnership enterprise shall be handled in accordance with the partnership agreement. If the partnership agreement is not stipulated or clearly stipulated, it shall be decided by the partners through consultation; If negotiation fails, the partners shall allocate and share the capital contribution in proportion to the paid-in capital; If the proportion of capital contribution cannot be determined, it shall be equally distributed and shared by the partners.
company law
Article 3 A company is an enterprise legal person, which has independent legal person property and enjoys legal person property rights. The company is liable for its debts with all its property. Shareholders of a limited liability company shall be liable to the company to the extent of their subscribed capital contribution; Shareholders of a joint stock limited company shall be liable to the company to the extent of the shares subscribed by them.
Article 11 To establish a company, the articles of association must be formulated according to law. The Articles of Association has an important influence on the company, shareholders, directors, supervisors and senior managers.
Binding.
Sole proprietorship enterprise law
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 31 If the property of a sole proprietorship enterprise is insufficient to pay off its debts, the investor shall pay off its debts with other personal property.