Legal basis: Law of People's Republic of China (PRC) on Foreign-funded Enterprises.
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.