Whether a sole proprietorship can file for bankruptcy

What is a Sole Proprietorship?

You are either a sole proprietorship or a one-person company. See if your company has articles of association, if there are articles of association, it is a one-person company, if there is no articles of association, it belongs to a sole proprietorship. The registered capital required for a one-person company is at least 100,000 yuan.

Whether it is a one-person company or a sole proprietorship, you can file for bankruptcy, but the bankruptcy of a one-person company needs to be handled by a specialized agency, while a sole proprietorship does not need a special agency, you can reach an agreement with creditors, strictly speaking, only a one-person company is a meaningful bankruptcy system for you.

A one-person company has legal personality and you are only liable to the extent of your capital contribution to the company. However, if your company's accounts and personal accounts are partially parted or if you have committed other serious violations of the company law, you may also be denied legal personality, and if this happens, you will need to bear the debt with your personal property.

A sole proprietorship does not have a legal personality, and you need to settle your debts with all of your personal property.

If it's a one-person company, you'll be fine if the company goes bankrupt, and if it's a sole proprietorship, you'll need to pay it off until it is paid off. However, the bank seems to have a bad debt system, and I don't know about this, if your loan is considered bad debt, no one will look for you in the future.

In either case, the child will not have to bear your debts, and the child will only be able to inherit your property, which means that in the worst case, you will not be able to leave an inheritance for your child. There are even ways you can transfer the money to your child's name now, and it is possible to avoid debts, although it is illegal, but many people do it. A one-person company does not need to be transferred, and it still makes sense for a sole proprietorship to be transferred.

Legal Knowledge: Can an Individual File for Bankruptcy? How to liquidate the property after bankruptcy?

But some people say that he has filed for bankruptcy for a long time, and the court can declare him bankrupt through his bankruptcy application.

A sole proprietorship does not meet the conditions for bankruptcy and should be jointly and severally liable for the debts unlimitedly.

Legal Analysis: No. According to the provisions of the Sole Proprietorship Law, a sole proprietorship is not a legal entity, and the shareholders bear unlimited liability for the company's debts, so they cannot file for bankruptcy.

Legal basis: Article 18 of the Law of the People's Republic of China on Sole Proprietorship Enterprises Where an investor in a sole proprietorship enterprise explicitly uses the common property of his or her family as his or her personal contribution when applying for the registration of the establishment of the enterprise, he shall bear unlimited liability for the debts of the enterprise with the common property of the family in accordance with the law.

A sole proprietorship cannot file for bankruptcy, and the business owner has unlimited liability for the debts of the sole proprietorship. However, the creditor may apply to the people's court for liquidation, and the creditor may also sue the business owner for repayment of the debt within the statutory statute of limitations.

1. Whether personal debts can be added to the company.

Personal debt can be added to the company. If the personal debts cannot be repaid, and the debtor establishes a sole proprietorship company, the creditor may apply to repay the debts with the property of the sole proprietorship. A sole proprietorship enterprise refers to a business entity established in China, which is invested by a natural person, and the property is owned by the investor, and the investor bears unlimited liability for the debts of the enterprise with his personal property.

When applying for the establishment and registration of the enterprise, the investor of a sole proprietorship enterprise shall bear unlimited liability for the debts of the enterprise in accordance with the law if it is clearly stated that the common property of the enterprise is used as the personal capital contribution. If the assets of the sole proprietorship enterprise are insufficient to pay off the debts, the investor shall collect and recover other personal assets.

2. What are the responsibilities of the sole proprietorship company?

Unlimited Liability. According to the law, a sole proprietorship enterprise refers to a business entity established in China in accordance with the Law on Sole Proprietorship Enterprises, invested by a natural person, whose property is owned by the investor, and whose personal property bears unlimited liability for the debts of the enterprise.

If an investor in a sole proprietorship enterprise clearly uses the common family property as an individual contribution when applying for the establishment and registration of the enterprise, it shall bear unlimited liability for the debts of the enterprise with the common family property in accordance with the law.

3. Characteristics of sole proprietorship operations.

The business characteristics of a sole proprietorship are that the operation and management are flexible and free, and the business owner can determine the business strategy and make management decisions completely according to the will of the individual. The Law on Sole Proprietorship Enterprises stipulates that an investor in a sole proprietorship may manage the affairs of the enterprise on its own, or may entrust or employ other persons with civil capacity to be responsible for the management of the affairs of the enterprise.

Article 9 of the Sole Proprietorship Act.

To apply for the establishment of a sole proprietorship enterprise, the investor or the person entrusted by the investor shall submit the application for establishment, the investor's identity certificate, and the certificate of filial piety and use of the production and business premises to the registration authority where the sole proprietorship enterprise is located.

Article 10. The application for the establishment of a sole proprietorship shall contain the following matters:

1) The name and domicile of the enterprise;

2) the name and residence of the investor;

3) the amount and method of capital contribution of the investor;

4) Scope of business.

"Bankruptcy" is not applicable to sole proprietorships, only "dissolution".

Article 9 of the Law of the People's Republic of China on Sole Proprietorship Enterprises shall apply for the establishment of a sole proprietorship enterprise by the investor or the person entrusted by the investor or the person entrusted by him to submit the application for establishment, the investor's identity certificate, the certificate of use of the production and business premises and other documents to the registration authority where the sole proprietorship enterprise is located. Article 10 of the Law of the People's Republic of China on Sole Proprietorship Enterprises The application for the establishment of a sole proprietorship enterprise shall contain the following matters: (1) the name and domicile of the enterprise; (2) The name and residence of the investor; The amount and method of capital contribution of the investor; 4) Scope of business.

Legal Analysis: No. According to the provisions of the Sole Proprietorship Enterprise Law, a sole proprietorship is not a legal person organization, and the shareholders bear unlimited liability for the company's debts, so they cannot file for bankruptcy.

Legal basis: Law of the People's Republic of China on Sole Proprietorship Enterprises》 Article 18 Where an investor in a sole proprietorship enterprise clearly uses the common property of his or her family as his personal contribution when applying for the registration of the establishment of the enterprise, he shall bear unlimited liability for the debts of the enterprise with the common property of the family in accordance with the law.