A sole proprietorship enterprise has the following main features:
1. A sole proprietorship enterprise is established by a natural person. Investing in the establishment of an enterprise is, of course, a civil legal act, so investors should have full capacity for civil conduct and be people who are not prohibited from engaging in profit-making activities by laws and administrative regulations.
2. The property of a sole proprietorship enterprise belongs to individual investors. In other words, a sole proprietorship enterprise itself has no independent property ownership.
3. Investors assume unlimited liability for corporate debts with their personal property. Since a sole proprietorship enterprise does not have independent property rights, when the registered capital contribution of the investor is insufficient to pay off the debts of the sole proprietorship enterprise, the investor shall bear the responsibility with his personal property.
4. A sole proprietorship enterprise is only a business entity, not an enterprise legal person. One of the important characteristics of a legal person is that it independently undertakes limited liability with its property. A sole proprietorship enterprise has neither independent property nor unlimited external liability, so it is not a legal person.
Legal basis: Article 8 of the Law of People's Republic of China (PRC) Municipality on Sole proprietorship enterprises 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.