12 Starting a business: don't bet the family savings

Losing money isn't the only risk. For a sole proprietorship, if you ran the business alone, debts are paid from property in your name (personal property). If the family ran it together or who ran it is unclear, debts are paid from family property. Debts both spouses signed count as joint marital debt; later assent by one spouse counts too. A loan in one spouse's name still counts as joint debt if the creditor shows it went into the couple's shared business. For companies there is another rule: subscribed capital is what a shareholder promised at registration. When the company can't pay a due debt, creditors may demand early payment of the portion not yet due (nationwide).

Guarantee wording means «if the debtor doesn't pay, you pay». With «joint-and-several guarantee», creditors need not pursue the company first—they can demand payment from you directly. With «general guarantee», they must sue or arbitrate against the company and have the court enforce on its assets first; only the remainder can be collected from you. Debts both spouses signed count as joint marital debt; later assent counts too. A spouse's signature puts both sides' family assets on the hook (nationwide, from 2021).

Sole proprietorship debts are paid from personal property or from family property. General partners in an ordinary partnership bear unlimited joint and several liability—pay in full until cleared, and a creditor may demand the entire debt from one partner alone. Limited partnerships are different: limited partners are liable only up to subscribed capital. LLC shareholders are also liable only up to subscribed capital. «Limited» fails in three situations. First, subscribed capital must be fully paid within 5 years of formation, and when the company can't pay due debts, creditors may demand early payment. Second, capital withdrawn after contribution must be returned. Third, using the company as a shell to dodge debt and seriously harming creditors makes you personally jointly liable for company debts. One-shareholder companies are stricter: that shareholder must prove company funds and personal funds are separate; if not, personal liability follows. Courts mainly look at whether money and books are separate. Shareholders casually spending company money without books, or mixing company and personal accounts, count as mixing (nationwide, from July 2024).

A registered shareholder is a legal shareholder. Pay subscribed capital in full by the deadline in the articles; otherwise pay the shortfall and compensate company losses. If a founder didn't contribute at formation, other founders at formation share joint liability for that gap. When the company can't pay due debts, creditors may demand early payment of capital not yet due. The operator isn't on the register; the obligation is still yours (nationwide, from July 2024).

Regulations require the franchisor to have at least 2 directly operated stores running 1 year or more. Within 15 days of the first franchise contract it must file with the commerce department; no filing: fine 10000–50,000 yuan; still unfiled after the deadline: 50000–100,000 yuan plus public notice. Before signing it must deliver written disclosure on 12 items—including fee types and amounts, deposit refund conditions, franchisee count and how stores are doing, audited report summaries for the last 2 years, and litigation and arbitration in the last 5 years. The contract must also state that the franchisee may unilaterally terminate within a period after signing. Concealment or false disclosure lets the franchisee cancel the contract (nationwide, from May 2007).

The regulation fixes the materials as five items. «(1) Application form». «(2) Applicant qualification documents and natural-person identity proof». «(3) Domicile or main business premises documents». «(4) Articles for companies, non-company enterprise legal persons, farmer specialized cooperatives (unions), or partnership agreement». «(5) Other materials required by laws, administrative regulations, and the State Council market supervision department». In plain language: one application; proof of who you are or that you're eligible; proof you may use the shop or office; articles or partnership agreement; plus anything else named. Companies also submit appointment documents and ID for the legal representative, directors, supervisors, and senior managers. Sole props don't file articles. The name is «declared by the applicant according to law»—you choose and report it. Registered capital uses «subscribed registration»—state how much you promise; you need not pay at the counter. Business scope is chosen from the authority's published categories. Complete and correctly formatted materials are «confirmed and registered on the spot». If not finished on the spot, «within 3 working days», with up to 3 more for complex cases. «The business license issue date is the market entity's establishment date»—the printed date is when the company or shop is born (nationwide, from March 2022).

Operating without authorization is handled by the department the law designates. No license where the law doesn't spell out a penalty: stop, confiscate gains, fine up to 10,000 yuan. Heavier track: monopoly or restricted goods without permission, or securities, futures, insurance, or payment settlement without approval—serious cases are illegal business operation, up to 5 years' imprisonment or short-term detention plus a fine of 1–5 times illegal gains; especially serious, 5 years or more (nationwide).

Food Safety Law: food businesses need a license first—produce food, sell food, or do catering, all need a license by law. «However, selling edible agricultural products and selling prepackaged food only do not require a license. Selling prepackaged food only shall be filed with the local county-level or above people's government food safety supervision department.» Edible agricultural products are unprocessed fresh meat, vegetables, and the like. Whether food counts as prepackaged is judged by the applicable standard, not merely by whether someone else made it and it has packaging; for the definition see item 9 (prepackaged food labels). «Specific management rules for small food production workshops and food vendors are set by provinces, autonomous regions, and municipalities»—those two tiers follow provincial rules. Operating food without a license: confiscate illegal gains, food, tools, equipment, and raw materials. If goods value (sale-price total for the batch) is under 10,000 yuan, additionally fine 50000–100,000 yuan; if 10,000 yuan or more, fine 10–20 times goods value. Pig Slaughter Management Regulations: pigs only at state-designated slaughter plants with official centralized quarantine. «Except personal self-slaughter for own consumption in rural areas, no unit or individual may engage in pig slaughter without designation.» «Pig products sold or used by sellers, meat processors, catering operators, and centralized meal units must come from designated slaughter plants with quarantine and meat quality inspection passed.» So pork you sell or use must come from designated plants, with both quarantine and quality inspection passed. Private slaughter outside designated plants: ordered shut down; pigs, slaughter tools and equipment, and illegal gains confiscated; fines match the unlicensed-food tier above. Animal Epidemic Prevention Law: sold or shipped animal products must carry quarantine certificates and marks with the goods; missing them: order correction, then fine up to one times the value of comparable compliant goods. Judicial interpretation covers punitive damages—extra pay beyond a refund. Food made or sold by small workshops or vendors that fails food safety standards: buyers claiming tenfold damages should be upheld by courts (nationwide).

As of October 2026, the current GB 7718-2011 requires prepackaged food to be pre-measured and packaged, or made, in packaging materials and containers. The package must carry a uniform weight or volume mark. Food weighed and bagged only when the customer buys cannot be judged prepackaged just because it was bagged. Food made and sold on the spot is outside this labeling general standard, and takeaway catering cannot be fitted to it just because there is a meal box. The Food Safety Law requires prepackaged food to carry a label on the package. For food sold directly to consumers, except where the standard expressly allows omission, the label must show name, specification, net content, production date, composition or ingredient list, the producer’s name, address and contact, and shelf life. It must also show the product standard code, storage conditions, the generic names in the national standard of the food additives used, and the production license number. Anything else that laws, regulations or food safety standards require must be shown too. For bulk food, the container and outer package must also show name, production date or production batch number, and shelf life. The operator’s name, address, contact and similar information must be shown as well. Producing or selling prepackaged food with no label, or with a label or instructions that do not meet this law: illegal gains and the food are confiscated. If the goods value (the total at sale price) is under 10,000 yuan, an additional fine of 5,000 to 50,000 yuan; if 10,000 yuan or more, a fine of 5 to 10 times the goods value. In serious cases, ordered to stop production or business, up to revocation of the license. Where the label or instructions have only a minor flaw that neither affects food safety nor misleads consumers, the order is first to correct; only if refused, a fine of up to 2,000 yuan. The new Prepackaged Food Labeling General Standard is numbered GB 7718-2025, issued 16 March 2025. It takes effect 16 March 2027, with a two-year transition. The new version also brings in food pre-packaged and sold by weight or piece count, but catering food, food made and sold on the spot, and the like are still outside it. It requires an independent area on the package showing the production date and the shelf-life end date together. Dates must use high-contrast type and color that are easy to read, in year-month-day order (nationwide)

Food Safety Law: «Labels and instructions for food and food additives must not contain false content and must not involve disease prevention or treatment functions. Producers and operators are responsible for the content of labels and instructions they provide.» «Food advertising shall be true and lawful, must not contain false content, and must not involve disease prevention or treatment functions. Food producers and operators are responsible for the truth and legality of food ad content.» Packaging, instructions, and ads can't claim prevention or cure; sellers answer for what they write. False or misleading food ads are penalized under the Advertising Law. The Advertising Law also bans: «Except medical, drug, and medical device advertising, no other advertising may involve disease treatment functions, and must not use medical terms or terms that easily confuse the promoted goods with drugs or medical devices.» Except those three ad categories, no ad may claim treatment or use drug- or device-sounding words. Violations: stop the ad; the advertiser must publicly clarify and remove impact in the scope where it ran; fine 1–3 times ad fees. If fees can't be calculated or are clearly understated: 100000–200,000 yuan. Serious: 3–5 times fees, or 200000–1,000,000 yuan; the business license may also be revoked (nationwide).

Criminal Law Article 143 covers this tier. Food you produce or sell that doesn't meet food safety standards and is «sufficient to cause a serious food poisoning accident or other serious foodborne disease» is already an offense—up to 3 years' imprisonment or short-term detention plus a fine. Serious health harm or other serious circumstances: 3–7 years plus fine. Especially serious consequences: 7 years to life, plus fine or full property confiscation. Article 144 covers adulteration. Adding toxic or harmful non-food raw materials to food you produce or sell, or selling knowing it was adulterated: up to 5 years' imprisonment plus fine. Serious health harm or other serious circumstances: 5–10 years plus fine. Death or other especially serious circumstances: penalties under Article 141 (10 years or more, life, or death). An SPC and SPP interpretation lists what counts as «sufficient to cause serious food poisoning or other serious foodborne disease»: (1) pathogenic microbes, pesticide residues, veterinary-drug residues, biological toxins, heavy metals, or other contaminants far above limits; (2) meat or products from livestock, poultry, animals, or aquatic animals that died of disease, of unknown cause, or failed inspection and quarantine; (3) goods the state expressly bans producing or selling for disease control or similar special needs; (4) foods for special medical purposes or main and complementary foods for infants and young children whose nutrition severely fails food safety standards. Additive overuse or misuse that can cause the above outcomes is also sentenced under Article 143. What counts as «toxic or harmful non-food raw materials» is not your call: substances laws ban adding to food, and substances on lists announced by relevant State Council departments—such as banned pesticides or drugs banned for food animals. One more situation also counts as «other serious circumstances» under Article 144: producing or selling 100,000 yuan or more but under 200,000 yuan, at or around primary or secondary schools, childcare, or elder-care institutions, to minors or older people. Slaughter and sales at a private pig-slaughter site outside designated plants, when serious, are sentenced as illegal business operation; sales of 100,000 yuan or more, or illegal gains of 50,000 yuan or more, count as «serious» (nationwide).

«Taxpayers with no tax payable in the period shall still file tax returns as required»—no tax due for that period, but the return is still due. The Tax Collection and Administration Law also requires truthful filing as required. Having no income, having no profit and having no tax to pay are three different things. Even with no income, costs and expenses already incurred, such as rent and wages, must be filled in truthfully as required. Tax-exempt income must be entered in its own field and not treated as zero income. Whether a zero return is allowed must be checked tax type by tax type against the conditions and form requirements. A Foshan tax bureau guide to corporate income tax filing gives an example: only when financial statements have been submitted and the cumulative income, cost and profit for the period are all zero does the one-click zero return apply. Even then headcount, total assets and so on must still be filled in, so the whole form is not all zeros. Late filing: «the tax authority shall order correction within a time limit and may impose a fine of up to 2000 yuan; if the circumstances are serious, a fine of 2000 yuan or more and up to 10,000 yuan.» Fail to file and underpay: tax is recovered, daily late fees are added, plus a fine of 50% or more and up to 5 times the underpaid tax. Late fees accrue at 0.05% per day. «If no tax return is filed for any tax type for three consecutive months, the tax collection system automatically designates the taxpayer as an abnormal account and stops use of the invoice purchase book and invoices.» Three months of no filing → abnormal status; you can't obtain or issue invoices. After catch-up filing and accepting the penalty, status clears automatically. Employers who hire people «shall, within 30 days from the date of establishment … apply to the local social insurance agency for social insurance registration» (nationwide).

Businesses that are small and tax under the simplified method are small-scale taxpayers. The law says «sales that have not reached the threshold are exempt from VAT». That line is the threshold. From 1 January 2026 through 31 December 2027, the threshold is 100,000 yuan by month or 300,000 yuan by quarter. Per transaction or per day it is 1000 yuan; below that line, no VAT. In the same window, the 3% rate is cut to 1%, except sales and rentals of real estate and transfers of land-use rights. On the flip side, issuing VAT special invoices—or other invoices usable for tax offset—without a real purchase or sale is fictitious invoicing. Up to 3 years' imprisonment or short-term detention, plus a fine of 20000–200,000 yuan. Issuing for others, for yourself, having others issue for you, or introducing others to issue all count. Larger tax amounts involved: 3–10 years. Huge amounts: 10 years or more, or life (nationwide).

The State Taxation Administration's notice states: «Tax authorities will not ask via WeChat mini-programs, phone, SMS, or similar channels for bank-card passwords, payment passwords, account balances, or SMS verification codes related to card payments.» «Some lawbreakers impersonate tax officials and contact taxpayers under names such as «help with tax filing», «preferential-tax agency», or «policy coaching».» To verify, call «the 12366 tax and fee service hotline or the competent tax authority's fixed-line number». Real on-site audits (inspections) «must present an inspection notice and inspector credentials». «Tax may be paid only through the e-Tax bureau or at a tax service hall; tax authorities will not provide a designated account.» Tax-service intermediaries have their own rule: «Extorting taxpayers or withholding agents in the name of tax authorities or tax personnel» is fined by severity. Impersonating state-organ staff to defraud: detention of 10 days or more and up to 15 days, and may add a fine of up to 1000 yuan. If both fraud and impersonation apply, «convict and punish under the heavier provision» (nationwide).

Earnest money counts only once the money has actually been handed over (it is established on actual delivery). If the side that paid the earnest money breaks the deal, that money is not returned. If the side that received it breaks the deal, it returns the original sum and pays another equal sum on top (double return). The part above 20% of the contract total (the subject amount of the main contract) is not counted as earnest money. If the agreed penalty is absurdly higher or absurdly lower than the actual loss, the court may, at one side's request, adjust it down or up. If both a penalty and earnest money are written into the contract, a real breach lets you claim only one of them. You cannot take both (nationwide, from 2021).

If employment reaches one month but stays under one year with no written contract, double wages are owed every month. From day one of work, social insurance registration is due within 30 days. Failure brings an order to correct first; after the deadline, a fine of 1–3 times the premiums due, plus 500–3000 yuan on the person who handled registration. Late or insufficient social-insurance payment adds late fees at 0.05% per day from the due date; still unpaid after the deadline, another fine of 1–3 times the arrears. The employer must declare and pay in full on time. Only statutory force majeure such as natural disaster allows delay or reduction. There is no «employee voluntary waiver» (nationwide).

A labor contract must specify how wages are paid and how social insurance is handled. The employer must pay wages timely and in full per the contract and state rules. Unpaid wages allow a direct application for a court payment order. An owner lending personal money to an employee is a loan contract. The Civil Code says: «A loan contract shall be in writing, except where natural persons agree otherwise.» An owner lending to an employee is exactly a loan between two natural persons—the law does not force writing. Contract content «generally includes loan type, currency, purpose, amount, interest rate, term, and repayment method.» Writing an IOU covering those items is the author's advice. Oral bonus promises without paper leave the party without evidence at a disadvantage (nationwide).

A randomized controlled trial tracked 116 Italian startups for about one year. A randomized controlled trial randomly splits people into two groups, trains only one, then compares outcomes. Founders trained to decide by «hypothesis first, then strict market-feedback tests» performed better. They were also more likely to pivot to other plans in time, and early dropout was not higher. Projects that look viable but can't work—the authors call them false-positive projects. The authors' explanation is that this approach cuts the chance of pouring more money into such projects (Italy, published 2020).

The prototype-versus-thousand-unit gap is where capital is locked. Yield sets true cost—yield is what share of a batch is qualified and salable. Supplier minimum order quantity and how long after shipment until you get paid (payment terms) set how much you advance. Inventory sets when cash returns. Products on the mandatory product certification catalogue must pass certification and bear the mark before leaving the factory and being sold. Selling without certification is penalized under the certification and accreditation regulations. Catering and food sales need a food business license (nationwide).

Knowingly selling goods bearing counterfeit registered trademarks: illegal gains of 30,000 yuan meets the criminal threshold; sales of 50,000 yuan likewise. Up to 3 years plus a fine, or a fine alone. At ten times those levels: 3–10 years plus fine. Unsold stock still counts: goods value at three times the sales threshold or more is also a crime. «Knowing» need not be admitted. A 2025 SPC and SPP interpretation lists five situations where knowledge is presumed unless you prove otherwise: (1) knowing the registered trademark on the goods was altered, swapped, or covered; (2) forging or altering the trademark owner's authorization, or knowing it was forged or altered; (3) prior criminal or administrative penalty for selling counterfeits, then selling the same kind again; (4) no reasonable grounds, buying or selling far below market; (5) after discovery by administrative or judicial authorities, moving or destroying infringing goods and accounting records, or providing false proof. When a company commits this offense, «the unit is fined, and the directly responsible managers and other directly responsible persons» are punished under the same article—so even if staff sourced the goods, the person who approved still faces judgment. Trademark law leaves an out: selling without knowing the goods infringe another's registered trademark, «if you can prove lawful acquisition and identify the provider, you bear no compensation liability». Whether that defense works depends entirely on invoices and upstream identity; without them you can't use it (nationwide; interpretation effective 26 April 2025).

Copyright law lists «using a work by adaptation, translation, annotation, or similar means without the copyright owner's permission» alongside direct copying as infringement. So recoloring, changing the background, or adding your own icon is still unlicensed use of someone else's work. The criminal threshold: for profit, without the copyright owner's permission, you reproduce and distribute fine-art works. Three numbers trip the offense: illegal gains of 30,000 yuan; illegal business amount of 50,000 yuan; or 500 copies (sheets) or more. Hit any one and it is copyright infringement—up to 3 years plus fine, or fine alone. At ten times those levels: 3–10 years. Only selling others' infringing copies: illegal gains of 50,000 yuan or more, or sales of 100,000 yuan or more—crime of selling infringing copies, up to 5 years. Trademarks likewise: two «likely to cause confusion» situations are infringement by themselves—using a similar mark on the same goods, or the same or a similar mark on similar goods. «Similar» is an express statutory infringement form. Editing someone else's trademark and reusing it still infringes if confusion is likely (nationwide; interpretation effective 26 April 2025).

Taking nurses as the example, regulations set duty boundaries as follows. Critical illness: notify the physician at once. In emergencies to save a critically ill patient, necessary emergency care may be given first. Illegal or non-standard medical orders: raise them with the physician, and report to the department head if needed. The Civil Code adds: voluntary emergency assistance that harms the rescued party—the rescuer bears no civil liability (nationwide).

No debts owed or owed to you, or all settled; no unpaid wages, social insurance, or tax; all investors' written commitment—then 20-day notice with no objection allows simplified deregistration. Sole proprietors: no notice; if authorities raise no objection within 10 days, direct deregistration. Company can't pay due debts and liabilities exceed assets (insolvent): may apply to court for reorganization, composition, or bankruptcy liquidation. Already dissolved without liquidation and insolvent: those responsible for liquidation must apply for bankruptcy liquidation. Neglect: late annual report → abnormal operation list. Two consecutive years no report, still on the list unchanged, and unreachable at the registered address → business license revoked. If the enterprise is revoked and the legal representative bears personal responsibility, that person may not serve as legal representative, director, supervisor, or senior manager for 3 years from revocation. Already on the abnormal list → no simplified deregistration (nationwide).

Guangdong Higher People's Court ruled on an agency fraud: Jiang, Xu and others, 55 people in all, ran companies in Guangzhou, Nanning, and Hangzhou. The court found they «knew they lacked e-commerce agency capability and technical conditions» yet, in the name of running Taobao stores, induced 7711 victims to buy or upgrade «service packages», taking more than 52,994,000 yuan. Two lead defendants got 14 years and 13 years 6 months for fraud. The court said the scheme was «tightly designed» and «many victims were cheated again and again». Jiangsu Public Security in 2025 broke «no-inventory» cross-border e-commerce scams into four steps. First, social posts promising «zero foundation» and «no need to stock». Second, add you as «operations coach» and push a designated platform. Third, after you open a store a first order appears quickly; they have you prepay goods cost, saying the buyer's payment is frozen on the platform until receipt; then the backend invents large order volume so you keep adding money. Fourth, when you try to withdraw, «account anomaly» or «system maintenance» and more unlock fees or service charges. In one case Ms. Zhang advanced over 900,000 yuan; the site went down in 3 days. Separately, an agency organized fake group-buys to boost rankings: market regulators fined it 100,000 yuan; the platform withheld 50,000 yuan of deposit; courts upheld the platform. The Supreme People's Court listed it as a 2026 typical case: «false transactions and fake-order reputation boosting are acts the law expressly prohibits». SAMR in 2025 also published a case: a company selling «one-click migrate» and «one-click dropship» software that scraped other platforms' listings was fined 530,000 yuan. SAMR told operators not to commit «shop-stealing migration», «no-inventory trading», and similar violations. The Civil Code route: a contract signed under fraud may be revoked by court or arbitration within 1 year of discovering the fraud; after revocation, money taken must be returned (nationwide).

Companies must «from 1 January to 30 June each year, submit the prior year's annual report to market supervision through the National Enterprise Credit Information Publicity System, and make it public». Late filing: listed on the abnormal operation list, «and given administrative penalties according to law». The list is on the publicity system—anyone can look it up. In government procurement and project bidding, listed firms are restricted or barred. Sole proprietors likewise file the prior year's report from 1 January to 30 June, online or on paper. Sole props opened that year start reporting the next year. Sole props may choose whether report contents are public, but failure to file still puts them on the abnormal list. Listed for missing reports: after filing the missing years, apply to the registration-place market supervision department to leave the list. Company: 2 consecutive years no report, still on the list unchanged, and unreachable at the registered address → business license revoked. Company annual reports must be public. Sole props who choose not to publicize content still show «annual report already submitted» on the system—so whether you filed and whether you're listed is visible online. SAMR has warned of a scam: someone «impersonates market supervision staff» by phone, says you are overdue and already on the abnormal list, then «guides you to search a so-called mini-program or official account» and pay for agency filing. SAMR's line is «annual reports are free». Filing and leaving the abnormal list «must go through official channels such as the National Enterprise Credit Information Publicity System». Courts have convicted such cases as fraud. Anhui Jingde court finished one: a registration agency had callers «deliberately hide their identity» so sole props thought they were market supervision; callers steered people to a third-party mini-program charging 98–398 yuan as «manual filing materials fees». They cheated 10099 sole props nationwide for more than 3,190,000 yuan. Three lead defendants got 10 years 6 months to 10 years 8 months for fraud. In a Jiaxing Nanhu case, the mini-program fine print said «filing is free»; the court still convicted fraud because callers «deliberately hid that operators can file online and made up stories of large fines». Nine people got 8 months to 4 years (nationwide).

Criminal Law Article 176 covers «illegally absorbing public deposits or absorbing them in a disguised form, disrupting financial order». Up to 3 years' imprisonment or short-term detention plus a fine, or a fine alone. Huge amounts or other serious circumstances: 3–10 years. Especially huge amounts or other especially serious circumstances: 10 years or more. An SPC judicial interpretation says all four conditions must be met: (1) no lawful permit from the relevant department, or taking money under a shell of lawful business; (2) public promotion through the internet, media, pitch meetings, flyers, phone messages, or similar channels; (3) promising to repay principal and interest or give returns within a period in money, goods, equity, or similar form; (4) taking money from unspecified members of the public. The same article continues: «Absorbing funds from specific persons among relatives, friends, or inside a unit without public promotion is not illegal absorption or disguised absorption of public deposits.» But a joint SPC–SPP–MPS opinion carves out two exceptions that still count as taking from the public: (1) when taking from relatives, friends, or employees, you know they are collecting from strangers for you and let it happen; (2) you first hire outsiders as employees in order to take money from them. Criminal lines trip on any one of three: 1,000,000 yuan or more absorbed; 150 people or more; or direct losses of 500,000 yuan or more. 5,000,000 yuan or more, 500 people or more, or losses of 2,500,000 yuan or more move into the 3–10 year tier. Amounts are counted on the full sum taken in. If the money was used mainly in normal production and operations, and the full amount taken is repaid before indictment, criminal punishment may be waived. Plainly minor circumstances with little harm are not treated as a crime. Below the criminal line there is still administrative penalty: the local lead department for illegal fundraising fines 20% to 1 times the amount raised. For unit fundraising, the legal representative and directly responsible persons «are given a warning and fined 500,000 yuan or more and up to 5,000,000 yuan» (nationwide; interpretation effective 1 March 2022).

Civil Code Article 279: «An owner who changes a residence into business premises shall, besides complying with laws, regulations, and the management covenant, obtain unanimous consent from interested owners.» An SPC judicial interpretation is more specific. Other owners in the same building all count as «interested owners». Owners in other buildings in the same estate count only if they prove impact on their property value or living quality. Changing use without their unanimous consent: requests to stop, restore, or compensate for losses shall be upheld. Arguing «a majority of owners agreed» is not upheld. The Ecological Environment Code took effect 15 August 2026; the Air Pollution Prevention and Control Law was repealed at the same time. Code Article 250 bans new construction, renovation, or expansion of catering projects that produce oil smoke, odors, or exhaust in three places: (1) residential buildings; (2) mixed-use buildings without a dedicated smoke flue; (3) commercial floors in mixed-use buildings adjacent to residential floors. Violations: ordered to correct first; refuse → ordered closed, plus a fine of 10000–100,000 yuan. The code also requires local governments to flag catering siting bans at registration. Applying for a food business license: premises must match the food types and volumes handled, and keep required distance from toxic or hazardous sites and other pollution sources. Conversely, if the premises themselves fail mandatory use conditions in laws or administrative regulations, you may terminate the lease—provided the inability to use is not your fault (nationwide).

Partnership Enterprise Law Article 4: the partnership agreement is made in writing by unanimous negotiation of all partners. Article 18 lists ten items the agreement should cover—including capital contribution form, amount, and payment deadline; profit distribution and loss sharing; who executes partnership affairs; admission and withdrawal; dispute resolution; dissolution and liquidation; and breach liability. Partners who don't form a partnership enterprise and only work together under a Civil Code partnership contract follow that contract; where the contract is silent, Civil Code defaults apply. Partnership decisions, unless the contract says otherwise, need unanimous partner consent. A partner who executes partnership affairs may not claim pay for that alone, unless the contract says otherwise. Profits and losses follow the contract. If silent: negotiate first; if negotiation fails, by actual capital ratios; if ratios can't be figured, equal shares. Partners bear joint liability for partnership debts; anyone who pays more may seek contribution from the others. With no partnership term agreed, it is an open-ended partnership—a partner may terminate at any time with reasonable advance notice to the others. For a partnership enterprise with no term agreed, a partner may withdraw with 30 days' notice to the others. The agreement also may not assign all profits to only some partners, or dump all losses on only some (nationwide).