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Order of the President of the People's Republic of China
(No. 20)
The Law of the People's Republic of China on Individual Proprietorship Enterprises, as adopted at the 11th Meeting of the Standing Committee of the Ninth National People's Congress on August 30, 1999, is hereby issued and shall come into force on January 1, 2000.
President of the People's Republic of China: Jiang Zemin
August 30, 1999
Law of the People's Republic of China on Individual Proprietorship Enterprises
(Adopted at the 11th Meeting of the Standing Committee of the Ninth National People's Congress on August 30, 1999)
| | 中華人民共和國主席令
（第二十號）
《中華人民共和國個人獨資企業法》已由中華人民共和國第九屆全國人民代表大會常務委員會第十一次會議于１９９９年８月３０日通過，現予公布，自２０００年１月１日起施行。
中華人民共和國主席 江澤民
１９９９年８月３０日
中華人民共和國個人獨資企業法
（１９９９年８月３０日第九屆全國人民代表大會常務委員會第十一次會議通過）
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Contents
| | 目錄
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Chapter I General Provisions
| | 第一章 總則
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Chapter II Establishment of Individual Proprietorship Enterprises
| | 第二章 個人獨資企業的設立
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Chapter III Investors and Business Management of Individual Proprietorship Enterprises
| | 第三章 個人獨資企業的投資人及事務管理
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Chapter IV Dissolution and Liquidation of Individual Proprietorship Enterprises
| | 第四章 個人獨資企業的解散和清算
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Chapter V Legal Responsibilities
| | 第五章 法律責任
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Chapter VI Supplementary Provisions
| | 第六章 附則
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Chapter I General Provisions
| | 第一章 總則
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Article 1 This Law is enacted in accordance with the Constitution with a view to regulating activities of individual proprietorship enterprises, protecting the legitimate rights and interests of investors and creditors of individual proprietorship enterprises, maintaining the socio-economic order and promoting the development of the socialist market economy in China.
| | 第一條 為了規範個人獨資企業的行為，保護個人獨資企業投資人和債權人的合法權益，維護社會經濟秩序，促進社會主義市場經濟的發展，根據憲法，制定本法。
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Article 2 The individual proprietorship enterprise referred to by this Law means a business entity which, in accordance with this Law, is established within China and invested in by one natural person and the property of which is personally owned by the investor who shall assume unlimited liabilities for the debts of the enterprise with his own property.
| | 第二條 本法所稱個人獨資企業，是指依照本法在中國境內設立，由一個自然人投資，財產為投資人個人所有，投資人以其個人財產對企業債務承擔無限責任的經營實體。
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Article 3 The domicile of an individual proprietorship enterprise shall be the place where its major business office is located.
| | 第三條 個人獨資企業以其主要辦事機構所在地為住所。
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Article 4 Individual proprietorship enterprises must abide by law and administrative regulations in their business operations, comply with the principle of honest and good-faith, and may not harm public interests.
Individual proprietorship enterprises shall fulfill the obligation of tax payment according to law.
| | 第四條 個人獨資企業從事經營活動必須遵守法律、行政法規，遵守誠實信用原則，不得損害社會公共利益。
個人獨資企業應當依法履行納稅義務。
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Article 5 The State shall protect the property and other legitimate rights and interests of individual proprietorship enterprises according to law.
| | 第五條 國家依法保護個人獨資企業的財產和其他合法權益。
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Article 6 Individual proprietorship enterprises shall employ personnel according to law. The legitimate rights and interests of the employees of individual proprietorship enterprises shall be protected by law.
Employees of individual proprietorship enterprises shall establish their trade unions according to law which shall display their activities according to law.
| | 第六條 個人獨資企業應當依法招用職工。職工的合法權益受法律保護。
個人獨資企業職工依法建立工會，工會依法開展活動。
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Article 7 The members of the Chinese Communist Party among the employees of individual proprietorship enterprises shall conduct their activities in accordance with the Constitution of the Chinese Communist Party.
| | 第七條 在個人獨資企業中的中國共產黨黨員依照中國共產黨章程進行活動。
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Chapter II Establishment of Individual Proprietorship Enterprises
| | 第二章 個人獨資企業的設立
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Article 8 In establishing an individual proprietorship enterprise, the following requirements shall met:
| | 第八條 設立個人獨資企業應當具備下列條件：
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(1) the investor being one natural person;
| | （一）投資人為一個自然人；
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(2) having a legal enterprise name;
| | （二）有合法的企業名稱；
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(3) having a capital to contributed by the investor;
| | （三）有投資人申報的出資；
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(4) having a fix place for its production and business operation with necessary conditions therefor; and
| | （四）有固定的生產經營場所和必要的生產經營條件；
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(5) having necessary personnel.
| | （五）有必要的從業人員。
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Article 9 In applying for the establishment of an individual proprietorship enterprise, the investor or his entrusted agent shall submit to the registration authority of the locality where the individual proprietorship enterprise is to be situated such documents as a formal application for the establishment of the individual proprietorship enterprise, a document certifying the investor's status and a document permitting the use of production and business operation.Where the application for the establishment of an individual proprietorship enterprise is entrusted to an agent, the agent shall produce the power of attorney issued by the investor and a document certifying his legitimacy as an agent.
Individual proprietorship enterprises may not engage in any business prohibited by law or administrative regulations. For the establishment of an individual proprietorship enterprise the business of which is subject to approval by a competent authority according to law or administrative regulations, the document of approval issued by the competent authority shall be submitted when applying for the establishment.
| | 第九條 申請設立個人獨資企業，應當由投資人或者其委托的代理人向個人獨資企業所在地的登記機關提交設立申請書、投資人身份證明、生產經營場所使用證明等文件。委托代理人申請設立登記時，應當出具投資人的委托書和代理人的合法證明。
個人獨資企業不得從事法律、行政法規禁止經營的業務；從事法律、行政法規規定須報經有關部門審批的業務，應當在申請設立登記時提交有關部門的批准文件。
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Article 10 The application for the establishment of an individual proprietorship enterprise shall specify the following particulars:
| | 第十條 個人獨資企業設立申請書應當載明下列事項：
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(1) the name and domicile of the individual proprietorship enterprise;
| | （一）企業的名稱和住所；
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(2) the name and domicile of the investor;
| | （二）投資人的姓名和居所；
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(3) the amount of capital to be contributed by the investor and the mode of capital contributor; and
| | （三）投資人的出資額和出資方式；
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(4) the scope of business of the individual proprietorship enterprise.
| | （四）經營範圍。
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Article 11 The name of an individual proprietorship enterprise shall be consistent with the form of its liabilities and the business it will undertake.
| | 第十一條 個人獨資企業的名稱應當與其責任形式及從事的營業相符合。
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Article 12 The registration authority shall, within 15 days counted from the date of receiving a written application for the establishment of an individual proprietorship enterprise, permits the registration where the requirements defined by this Law are met and grant to the applicant a business license or shall deny the registration where the requirements defined by this Law are not met and give the applicant a written reply to state the reasons therefor.
| | 第十二條 登記機關應當在收到設立申請文件之日起十五日內，對符合本法規定條件的，予以登記，發給營業執照；對不符合本法規定條件的，不予登記，並應當給予書面答複，說明理由。
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Article 13 The date of issuance of the business licence to an individual proprietorship enterprise shall be the date of its establishment. The investor of an individual proprietorship enterprise may not conduct any business under the name of the enterprise before obtaining the business license for the enterprise.
| | 第十三條 個人獨資企業的營業執照的簽發日期，為個人獨資企業成立日期。在領取個人獨資企業營業執照前，投資人不得以個人獨資企業名義從事經營活動。
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Article 14 Where an individual proprietorship enterprise plans to establish a branch, its investor or his entrusted agent shall apply for the registration to a competent registration authority in the locality where the branch is to be established, and shall obtain a business licence for the branch.
After the establishment of a branch is approved and registered, its registration shall be reported for the record to the original registration authority of the individual proprietorship enterprise to which the branch is affiliated.
The civil liabilities of a branch shall be assumed by the individual proprietorship enterprise that has established it.
| | 第十四條 個人獨資企業設立分支機構，應當由投資人或者其委托的代理人向分支機構所在地的登記機關申請登記，領取營業執照。
分支機構經核准登記後，應將登記情況報該分支機構隸屬的個人獨資企業的登記機關備案。
分支機構的民事責任由設立該分支機構的個人獨資企業承擔。
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Article 15 Where a registered matter of an individual proprietorship enterprise is to be changed in the period of its continued existence, a registration change shall be applied for to the relevant registration authority according to law within 15 days counted from the date of decision on the change.
| | 第十五條 個人獨資企業存續期間登記事項發生變更的，應當在作出變更決定之日起的十五日內依法向登記機關申請辦理變更登記。
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Chapter III Investors and Business Management of Individual Proprietorship Enterprises
| | 第三章 個人獨資企業的投資人及事務管理
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Article 16 Whoever is prohibited by law or administrative regulations from operating profit-making business, may not apply for the establishment of an individual proprietorship enterprise in the capacity of an investor.
| | 第十六條 法律、行政法規禁止從事營利性活動的人，不得作為投資人申請設立個人獨資企業。
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Article 17 The investor of an individual proprietorship enterprise enjoys the ownership of the property of the enterprise according to law, and the relevant rights may be transferred or inherited according to law.
| | 第十七條 個人獨資企業投資人對本企業的財產依法享有所有權，其有關權利可以依法進行轉讓或繼承。
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Article 18 The investor of an individual proprietorship enterprise who, while applying for registering the establishment of the enterprise, clearly indicates that the common property of his family is the capital contributed shall assume unlimited liabilities for the debts of the enterprise with the common property of his family according to law.
| | 第十八條 個人獨資企業投資人在申請企業設立登記時明確以其家庭共有財產作為個人出資的，應當依法以家庭共有財產對企業債務承擔無限責任。
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Article 19 The investor of an individual proprietorship may manage the enterprise business by himself, or may commission or employ any other person with civil capacity to take charge of the management of the enterprise business.
Where the investor of an individual proprietorship enterprise commissions or employs another person to manage the enterprise business, he shall conclude with the person commissioned or employed a written contract to specify the business commissioned and the scope of authorization.
The person commissioned or employed shall fulfill the obligation of honesty, good-faith and diligence, and shall manage the business of the relevant individual proprietorship enterprise in accordance with the contract signed with its investor.
The restriction put by the investor of an individual proprietorship enterprise on the power of the person commissioned or employed may not oppose a bona fide party.
| | 第十九條 個人獨資企業投資人可以自行管理企業事務，也可以委托或者聘用其他具有民事行為能力的人負責企業的事務管理。
投資人委托或者聘用他人管理個人獨資企業事務，應當與受托人或者被聘用的人簽訂書面合同，明確委托的具體內容和授予的權利範圍。
受托人或者被聘用的人員應當履行誠信、勤勉義務，按照與投資人簽訂的合同負責個人獨資企業的事務管理。
投資人對受托人或者被聘用的人員職權的限制，不得對抗善意第三人。
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Article 20 Any person commissioned or employed by the investor of an individual proprietorship enterprise to manage the enterprise business may not commit any of the following acts:
| | 第二十條 投資人委托或者聘用的管理個人獨資企業事務的人員不得有下列行為：
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(1) to seek or take bribes by taking advantage of his position;
| | （一）利用職務上的便利，索取或者收受賄賂；
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(2) to embezzle enterprise property by taking advantage of his position or work;
| | （二）利用職務或者工作上的便利侵占企業財產；
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(3) to misappropriate enterprise funds for personal use, or to lend such funds to other persons;
| | （三）挪用企業的資金歸個人使用或者借貸給他人；
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(4) to open a bank account for depositing enterprise funds in his own name or in any others name without authorization;
| | （四）擅自將企業資金以個人名義或者以他人名義開立帳戶儲存；
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(5) to provide guarantee with enterprise property without authorization;
| | （五）擅自以企業財產提供擔保；
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(6) to undertake a business that competes with the enterprise without consent of the investor;
| | （六）未經投資人同意，從事與本企業相競爭的業務；
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(7) to conclude a contract or to trade with the enterprise itself without consent of the investor;
| | （七）未經投資人同意，同本企業訂立合同或者進行交易；
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(8) to transfer the trademark or other intellectual property rights of the enterprise to others for their use without consent of the investor;
| | （八）未經投資人同意，擅自將企業商標或者其他知識產權轉讓給他人使用；
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(9) to divulge business secret of the enterprise; or
| | （九）泄露本企業的商業秘密；
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(10) any other acts prohibited by law or administrative regulations.
| | （十）法律、行政法規禁止的其他行為。
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Article 21 Individual proprietorship enterprises shall establish their account books and practice accounting according to law.
| | 第二十一條 個人獨資企業應當依法設置會計帳簿，進行會計核算。
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Article 22 Where individual proprietorship enterprises employ workers, they shall conclude labour contracts with the workers according to law, ensure their labour safety, and pay them salaries on time and in full.
| | 第二十二條 個人獨資企業招用職工的，應當依法與職工簽訂勞動合同，保障職工的勞動安全，按時、足額發放職工工資。
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Article 23 Individual proprietorship enterprises shall, in accordance with relevant regulations of the State, participate in social insurance programs and pay social insurance premiums for their employees.
| | 第二十三條 個人獨資企業應當按照國家規定參加社會保險，為職工繳納社會保險費。
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Article 24 Individual proprietorship enterprises may apply for loans and obtain the right to use land according to law and enjoy other rights defined by law and administrative regulations.
| | 第二十四條 個人獨資企業可以依法申請貸款、取得土地使用權，並享有法律、行政法規規定的其他權利。
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Article 25 No institutions or individuals may force individual proprietorship enterprises to provide financial resources, material resources or manpower by any means in violation of law or administrative regulations. Individual proprietorship enterprises have the right to reject any acts meant to force them to provide financial resources, material resources or manpower in violation of law.
| | 第二十五條 任何單位和個人不得違反法律、行政法規的規定，以任何方式強制個人獨資企業提供財力、物力、人力；對于違法強制提供財力、物力、人力的行為，個人獨資企業有權拒絕。
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Chapter IV Dissolution and Liquidation of Individual Proprietorship Enterprises
| | 第四章 個人獨資企業的解散和清算
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Article 26 An individual proprietorship enterprise shall be dissolved in any of the following circumstances:
| | 第二十六條 個人獨資企業有下列情形之一時，應當解散：
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(1) the decision of the investor to dissolve the enterprise;
| | （一）投資人決定解散；
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(2) the death of the investor or the announcement of his death without an heir or with the decision of his heir to waive the right to inheritance;
| | （二）投資人死亡或者被宣告死亡，無繼承人或者繼承人決定放棄繼承；
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(3) revocation of its business license according to law; or
| | （三）被依法吊銷營業執照；
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(4) other circumstances as defined by law or administrative regulations.
| | （四）法律、行政法規規定的其他情形。
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Article 27 When an individual proprietorship enterprise is dissolved, its liquidation shall be done either by the investor himself or by a liquidator designated by a People's Court at the request of its creditors.
Where the liquidation is done by he investor himself, he shall notify the creditors in writing 15 days before the liquidation. If it is impossible to notify the creditors, he shall make a public announcement. The creditors shall their claims within 30 days counted from the date of receiving the notification, or within 60 days counted from the date of the public announcement in the absence of a notification.
| | 第二十七條 個人獨資企業解散，由投資人自行清算或者由債權人申請人民法院指定清算人進行清算。
投資人自行清算的，應當在清算前十五日內書面通知債權人，無法通知的，應當予以公告。債權人應當在接到通知之日起三十日內，未接到通知的應當在公告之日起六十日內，向投資人申報其債權。
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Article 28 After an individual proprietorship enterprise is dissolved, its original investor shall still be liable to pay the debts of the enterprise incurred during the period of its continued existence. However, where creditors do not claim the refund by the debtor within a period of five years, such liabilities shall vanish.
| | 第二十八條 個人獨資企業解散後，原投資人對個人獨資企業存續期間的債務仍應承擔償還責任，但債權人在五年內未向債務人提出償債請求的，該責任消滅。
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Article 29 After the dissolution of an individual proprietorship enterprise, its property shall be liquidated in the following order:
| | 第二十九條 個人獨資企業解散的，財產應當按照下列順序清償：
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(1) the salaries and the social insurance premiums owed to its employees;
| | （一）所欠職工工資和社會保險費用；
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(2) the taxes due; and
| | （二）所欠稅款；
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(3) other debts.
| | （三）其他債務。
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Article 30 In the period of its liquidation, the individual proprietorship enterprise may not operate any business irrelevant to the purpose of liquidation. Before its property is liquidated in accordance with the preceding Article, the investor may not transfer or hide his property.
| | 第三十條 清算期間，個人獨資企業不得開展與清算目的無關的經營活動。在按前條規定清償債務前，投資人不得轉移、隱匿財產。
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Article 31 Where the property of an individual proprietorship enterprise is insufficient for the liquidation, the investor shall pay off the debts with his other property.
| | 第三十一條 個人獨資企業財產不足以清償債務的，投資人應當以其個人的其他財產予以清償。
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Article 32 After the liquidation of an individual proprietorship enterprise is ended, the investor or the liquidator designated by a People's Court shall work out a liquidation report and have its registration cancelled by registration authority within a period of 15 days.
| | 第三十二條 個人獨資企業清算結束後，投資人或者人民法院指定的清算人應當編制清算報告，並于十五日內到登記機關辦理注銷登記。
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Chapter V Legal Responsibilities
| | 第五章 法律責任
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Article 33 In case of a violation of the provisions of this Law by submitting false documents or taking other fraudulent means to obtain the registration of an individual proprietorship enterprise, due correction shall be ordered, and a fine of not more than 5,000 yuan shall be imposed; and the business license shall be concurrently revoked if the case is serious.
| | 第三十三條 違反本法規定，提交虛假文件或采取其他欺騙手段，取得企業登記的，責令改正，處以五千元以下的罰款；情節嚴重的，並處吊銷營業執照。
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Article 34 In case of a violation of the provision of this Law by giving a name inconsistent with the name registered at the competent registration authority, a correction shall be ordered within a prescribed period of time, and a fine of not more than 2,000 yuan shall be imposed.
| | 第三十四條 違反本法規定，個人獨資企業使用的名稱與其在登記機關登記的名稱不相符合的，責令限期改正，處以二千元以下的罰款。
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Article 35 In case of altering , leasing or transferring the business of an individual proprietorship enterprise, correction shall be ordered, the illegal gains shall be confiscated, and a fine of not more than 3,000 yuan shall be imposed; and the business license shall be revoked if the case is serious.
In case of forgery of a business license, the suspension of the business operation shall be ordered, the illegal gains shall be confiscated, and a fine of not more than 5,000 yuan shall be imposed ; and criminal responsibility shall be investigated according to law if the case constitutes a crime.
| | 第三十五條 塗改、出租、轉讓營業執照的，責令改正，沒收違法所得，處以三千元以下的罰款；情節嚴重的，吊銷營業執照。
偽造營業執照的，責令停業，沒收違法所得，處以五千元以下的罰款。構成犯罪的，依法追究刑事責任。
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Article 36 Where an individual proprietorship enterprise fails to start its business operation over six months following its establishment without justification, or suspends its business operation by itself over six months after its opening, its business license shall be revoked.
| | 第三十六條 個人獨資企業成立後無正當理由超過六個月未開業的，或者開業後自行停業連續六個月以上的，吊銷營業執照。
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Article 37 In case of a violation of the provisions of this Law by operating business in the name of an individual proprietorship enterprise without obtaining a business license, suspension of the business operation shall be ordered and a fine of not more than 3.000 yuan shall be imposed.
In case of failure to apply for a registration change about the change in registered matters of an individual proprietorship enterprise, due registration change within a prescribed period of time shall be ordered; in case of failure to apply for the registration change within the prescribed period of time, a fine of not more than 2,000 yuan shall be imposed.
| | 第三十七條 違反本法規定，未領取營業執照，以個人獨資企業名義從事經營活動的，責令停止經營活動，處以三千元以下的罰款。
個人獨資企業登記事項發生變更時，未按本法規定辦理有關變更登記的，責令限期辦理變更登記；逾期不辦理的，處以二千元以下的罰款。
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Article 38 Where any person commissioned or employed by an investor to manage his individual proprietorship enterprise breaks the contract concluded by the two parties causing thus damage to the investor, the person shall assume the civil liability for damage.
| | 第三十八條 投資人委托或者聘用的人員管理個人獨資企業事務時違反雙方訂立的合同，給投資人造成損害的，承擔民事賠償責任。
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Article 39 Any individual proprietorship enterprise that, in violation of the provisions of this Law, infringes upon legitimate rights and interests of its employees, fails to ensure the labour safety for its employees or fails to pay their social insurance premiums shall be punished in accordance with the law or the relevant administrative regulations, and the liability therefor shall be investigated.
| | 第三十九條 個人獨資企業違反本法規定，侵犯職工合法權益，未保障職工勞動安全，不繳納社會保險費用的，按照有關法律、行政法規予以處罰，並追究有關責任人員的責任。
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Article 40 When a person commissioned or employed by an investor violates the provisions of Article 20 of this Law, if the case is embezzlement of enterprises property or infringement of enterprise property rights or interests, the return of the property embezzled shall be ordered; if the case involves illegal gains, the illegal gains shall be confiscated; and if the case constitutes a crime, criminal responsibility shall be investigated according to law.
| | 第四十條 投資人委托或者聘用的人員違反本法第二十條規定，侵犯個人獨資企業財產權益的，責令退還侵占的財產；給企業造成損失的，依法承擔賠償責任；有違法所得的，沒收違法所得；構成犯罪的，依法追究刑事責任。
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Article 41 Any violation of law or administrative regulations by individual proprietorship enterprises to provide financial resources, material resources or manpower shall be punished in accordance with the relevant law or administrative regulations, and the liability of the persons responsible therefor shall be investigated.
| | 第四十一條 違反法律、行政法規的規定強制個人獨資企業提供財力、物力、人力的，按照有關法律、行政法規予以處罰，並追究有關責任人員的責任。
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Article 42 Where an individual proprietorship enterprise and its investor hide or transfer property before or during the period of liquidation to evade liabilities, the property hidden or transferred shall be retrieved according to law, and punishment shall be given in accordance with the relevant regulations; if the case constitutes a crime, criminal responsibility shall be investigated according to law.
| | 第四十二條 個人獨資企業及其投資人在清算前或清算期間隱匿或轉移財產，逃避債務的，依法追回其財產，並按照有關規定予以處罰；構成犯罪的，依法追究刑事責任。
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Article 43 When an investor violates the provisions of this Law and thus holds civil liability for damage and has to pay fines or forfeits as well, if his property is insufficient to cover the payment, or if he has been sentenced to the confiscation of his property, he shall meet the civil liability for damage first.
| | 第四十三條 投資人違反本法規定，應當承擔民事賠償責任和繳納罰款、罰金，其財產不足以支付的，或者被判處沒收財產的，應當先承擔民事賠償責任。
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Article 44 Where a registration authority permits the registration of an individual proprietorship enterprise that does not meet the registration requirements defined by this Law, or denies the registration of an individual proprietorship enterprise that meets the registration requirements defined by this Law, the person directly responsible therefor shall be given administrative punishment according to law; if the case constitutes a crime, criminal responsibility shall be investigated according to law.
| | 第四十四條 登記機關對不符合本法規定條件的個人獨資企業予以登記，或者對符合本法規定條件的企業不予登記的，對直接責任人員依法給予行政處分；構成犯罪的，依法追究刑事責任。
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Article 45 Where the person in charge of a department superior to a registration authority forcibly orders the interested registration authority to permit the registration of an individual proprietorship enterprise that does not meet the registration requirements defined by this Law, or forcibly orders it to deny the registration of an individual proprietorship that meets the registration requirements defined by this Law, or covers up its unlawful registration acts, the person directly responsible therefor shall be given administrative punishment according to law; and if the case constitutes a crime, criminal responsibility shall be investigated according to law.
| | 第四十五條 登記機關的上級部門的有關主管人員強令登記機關對不符合本法規定條件的企業予以登記，或者對符合本法規定條件的企業不予登記的，或者對登記機關的違法登記行為進行包庇的，對直接責任人員依法給予行政處分；構成犯罪的，依法追究刑事責任。
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Article 46 Where a registration authority denies the registration of an application that meets the legal requirements or fails to give a reply beyond the legally prescribed time limit, the party concerned may apply for an administrative reconsideration or file an administrative lawsuit in accordance with the law.
| | 第四十六條 登記機關對符合法定條件的申請不予登記或者超過法定時限不予答複的，當事人可依法申請行政複議或提起行政訴訟。
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Chapter VI Supplementary Provisions
| | 第六章 附則
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Article 47 This Law shall not apply to the foreign-capital enterprises in China.
| | 第四十七條 外商獨資企業不適用本法。
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| Article 48 This Law shall go into effect as of January 1, 2000. | | 第四十八條 本法自２０００年１月１日起施行。
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