Is sole proprietorship by natural persons limited liability or unlimited liability?

Legal analysis: The so-called "limited liability company wholly owned by natural persons" should be a limited liability company with only one natural person shareholder as stipulated in the Company Law. Special provisions have been made for one-person limited liability companies. If the shareholders of a one-person limited liability company cannot prove that the company's property is independent of the shareholders' own property, they shall be jointly and severally liable for the company's debts. A wholly natural person-owned company shall bear unlimited liability.

Legal basis: People's Republic of China (PRC) Company Law.

Article 57 The provisions of this section shall apply to the establishment and organization of a one-person limited liability company. Where there are no provisions in this section, the provisions in the first and second sections of this chapter shall apply.

A one-person limited liability company as mentioned in this Law refers to a limited liability company with only one natural person shareholder or one corporate shareholders.

Article 58 A natural person can only invest in the establishment of a one-person limited liability company. A one-person limited liability company cannot invest in the establishment of a new one-person limited liability company.