Legal basis: Article 30 of the Regulations on the Administration of Registration of Enterprise Legal Persons in People's Republic of China (PRC). Enterprises and institutions that engage in business activities without approval and registration shall be ordered to stop their business activities and their illegal income shall be confiscated.
Article 26 of the Measures for the Administration of the Registration of Partnership Enterprises in People's Republic of China (PRC), who has not been approved and registered by the enterprise registration authority according to law and obtained a business license, engages in business activities in the name of a partnership enterprise, shall be ordered by the enterprise registration authority to stop business activities and may be fined not more than 5,000 yuan. These Regulations shall apply to those who engage in business activities in the name of partnership enterprises.