Journalism

Dalian finance company summary!What is the difference between a company, an individual, a branch, a subsidiary or a limited company?Today unified reply!

2021-11-22

Many small partners are not clear about the concept of company, individual business, branch company, subsidiary company and limited company, so today Dalian finance company will come to popularize science!

one
Enterprises and companies

what!??Are these two words different?

Yes, in industrial and commercial registration, some organizational forms belong to enterprises, but not to companies.
In other words, the opposite of an enterprise is a "public institution". The difference between the two is that an enterprise (including a company) is for profit.Institutions such as hospitals, Dabai feels like it is also aimed at XX... Well, you know.

Enterprises include not only companies, but also partnership enterprises, sole proprietorship enterprises and foreign-invested enterprises, but not self-employed enterprises.


two
The difference between individual proprietorship, sole proprietorship and one person limited company

A sole proprietorship enterprise (hereinafter referred to as a sole proprietorship enterprise) refers to a business entity established in China in accordance with the law of the people's Republic of China on wholly individually owned enterprises. The assets are owned by the investor and the investor is liable for the debts of the enterprise with his personal (or family) property.A sole proprietorship enterprise does not have the legal personality.

Individual business, referred to as individual business, refers to an economic form in which the means of production are privately owned, mainly based on personal labor, and the income from labor is controlled by individual workers themselves.There are three organizational forms of individual business, family business and individual partnership.Because individual businesses are responsible for their debts, they do not have the legal personality.

One person company refers to a limited liability company with only one natural person shareholder or one legal person shareholder. The shares or capital contribution of the company belong to one shareholder.In the case of one-man company, if shareholders can prove that their property is independent of the company's property, they can bear limited liability for the company's debts.

Individual business, sole proprietorship and one person limited company are three different legal forms for individual investment. The following compares the three legal forms from several aspects.

three
What's the difference between individual proprietorship, sole proprietorship and one person limited company?

First, the legal status is different

According to the law of our country, the subject of civil legal relationship can be divided into natural person and legal person.
Individual businesses do not have legal personality.Within the scope permitted by law, a citizen who has been approved and registered to engage in industrial and commercial operations is an individual business.

A sole proprietorship enterprise is a business entity established in China according to law and invested by a natural person. The property is owned by the investor. The investor is responsible for the debt of the enterprise with his personal property.A sole proprietorship enterprise does not have the legal personality.

One person limited liability company refers to a limited liability company with only one natural person shareholder or one legal person shareholder. It is an economic entity with legal personality.

Secondly, the investors are different.

Individual businesses may be established by a natural person or family.
The investor of a sole proprietorship enterprise is a natural person;
One person limited company is established by a natural person or legal person shareholder.

Then, the scope of the property responsible is different.

The individual industrial and commercial households should bear the responsibility of paying off the debts, that is, not limited to the property put into operation, but should bear the responsibility with all the property.It is operated by individuals and borne by personal property;It is run by the family and is borne by family property.

Sole proprietorship enterprise: under normal circumstances, the investor of a sole proprietorship enterprise is only liable for the debts of the enterprise with his personal property. Only when the enterprise is established and registered clearly takes the family common property as the individual contribution, can he be liable for the enterprise debt with the family joint property according to law.

One person limited company: according to the company law, the shareholders of one person limited liability company only bear limited liability for the company's debts to the limit of their capital contribution.

Then, the applicable law is different.

A sole proprietorship enterprise shall be established in accordance with the law of the people's Republic of China on wholly individually owned enterprises, and individual businesses shall be established in accordance with the general principles of the civil law.However, one person limited company is established according to the company law and is subject to its adjustment.

Tax administration is different.

First of all, from the perspective of tax administration, the tax administration of the tax bureau on individual businesses and individual proprietorship enterprises is relatively loose, while for one person limited liability company, the requirements are much more strict.

Secondly, the income tax involved is different.Individual businesses or sole proprietorship enterprises only need to pay individual income tax, not enterprise income tax;But one person limited liability company must pay enterprise income tax and pay individual income tax when distributing profits to shareholders.From this point of view, individual businesses and individual proprietorship enterprises are more advantageous than "one person company".

four
Head office, branch

When it comes to companies, we often hear people talk about the head office, branches, subsidiaries and parent companies. What do you mean?What's the difference?

The head office is actually a company. It is called the "head office" because of its branch company relationship. However, the branch company has no independent legal status, so the head office is responsible for everything.

five
Parent company, subsidiary company

But the parent company and subsidiary company are different from the head office and branch company.Both the parent company and the subsidiary company enjoy the status of independent legal person. They are both companies, but the parent company is the investor (or the controlling shareholder) of the subsidiary company, and there is an investment relationship between them.


In group companies, the concept of parent company and subsidiary company is used more.

six
Legal person and natural person

What is the meaning of "legal person" mentioned many times before?

Legal person is not a person in the sense of natural person, but a personification of an organization such as a company or an enterprise.

The "legal person" we often refer to here is actually the "legal representative" to make a distinction.

The legal representative is a "natural person", which is usually held by the chairman of the board of directors or the general manager of the company, but in fact, the "legal representative" may not serve in the company and may not be a shareholder of the company.

Companies, enterprises and institutions are all legal persons, but individual businesses and branches are not legal persons.

seven
Limited company


We often say that the company, in fact, refers to the "limited liability company", abbreviated as "limited company". The word "responsibility" is often omitted. No wonder so many companies leave a mess and are not responsible for social responsibility

However, there is another kind of limited company called "joint stock limited company". What is the difference between the two?

In terms of the company law, there are still many differences between the two, but one major direction is that limited companies are suitable for small and medium-sized companies, and joint-stock limited companies are usually large-scale (they can issue shares to the public).

eight
One person limited company, sole proprietorship enterprise


For a limited liability company, there can be only one shareholder, which is a one person limited liability company.

What is easy to confuse with one person limited company is a form of organization called "sole proprietorship".

The investor of one person limited liability company can be a natural person or a legal person (that is, another company).The investment subject of a sole proprietorship enterprise can only be a natural person.

The name of a one person limited liability company should bear the word "limited company", while the name of a sole proprietorship enterprise cannot have the word "company", because it is not a company but an enterprise.

Although a sole proprietorship enterprise is regarded as an "enterprise", compared with a "one person limited company", a sole proprietorship enterprise has many similarities with individual businesses, but the sole proprietorship is not even an enterprise.

nine
Domestic companies, foreign companies

So and so's children all went to the foreign company... It seems to be very exciting

In fact, foreign companies and domestic companies are relatively speaking, that is, the identity of investors is different.

In fact, a foreign-funded company is a general concept, which can be divided into Sino foreign joint ventures, Sino foreign cooperative enterprises, foreign-funded enterprises and foreign-invested partnership enterprises.

ten
Partnership

A partnership is an organization in which all partners enter into a partnership agreement to jointly contribute capital, operate in partnership, share profits and share risks. It is also for profit, but it does not have the qualification of "legal person".

The advantage of partnership is "flexibility". Many "rules" can be regulated by "partnership agreement". Unlike the registration of a "company", the company law has a lot of restrictions, and the most important thing is that a good partnership can avoid tax.

If you want to set up a "partnership", you need to understand its types. The common ones are "general partnership" and "limited partnership".

"General partnership" bears the responsibility;

"Limited partnership" consists of two kinds of partners: "general partner" and "limited partner". "General partner" is responsible, while "limited partner" is limited liability.


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