The difference between a company and a company
The meaning of a company is broader than that of a company, and a company is a form of business. According to different forms of ownership, enterprises can be divided into three forms: sole proprietorship, partnership and company.
Let us look at the concepts of sole proprietorships, partnerships and companies, all of which are discriminatory in the legal sense.
Individual proprietorship enterprise: refers to an operating entity established in China in accordance with the Law of the People's Republic of China on Individual Proprietorship, which is invested by a natural person, the property is owned by the investor, and the investor bears unlimited liability for the corporate debt with his personal property. The so-called self-employed individuals belong to such enterprises.
Partnership: refers to the general partnerships and limited partnerships established by natural persons, legal persons and other organizations in China in accordance with the Law of the Partnership Enterprise of the People's Republic of China. A general partnership is composed of general partners, who are jointly and severally liable for the debts of the partnership. A limited partnership consists of a general partner and a limited partner. The general partner assumes unlimited joint liability for the partnership debt, and the limited partner is liable for the partnership debt to the extent of its subscribed capital contribution. Some patent agencies are formed in the form of partnerships.
Company: According to the "Company Law of the People's Republic of China", "Company refers to a limited liability company and a company limited by shares established in China in accordance with this Law".
1. A limited liability company, referred to as a limited company, the shareholder is responsible for the company to the extent of its capital contribution, and the company is responsible for the company's debt with all its assets.
2. A company limited by shares, abbreviated as a joint-stock company, whose entire capital is divided into equal shares. The shareholders shall be liable to the company for the shares held by them, and the company shall be liable for the debts of the company with all its assets.
Regardless of the limited company or the joint-stock company, their biggest characteristic is that the shareholder's responsibility to the company is limited and limited by the amount of capital contribution. That is to say, when the company's assets are insufficient to repay the debts it owes, the shareholders do not need to bear the joint liquidity responsibility, that is, they do not need shareholders to pay off the debts for the company.
Compared with the limited company, an unlimited liability company means that the shareholder has unlimited joint liability for the company and its debt. In other words, if the company is unable to repay the debt, the shareholder is responsible for the liquidation. In China, it is not allowed to set up an unlimited liability company, but it is allowed to set up enterprises with unlimited liability, such as individual proprietorship enterprises and partnership enterprises. These companies are not independent legal entities, so they cannot be a company, and the business owners directly assume unlimited corporate responsibility.
In addition, there is another company called the two-in-one company, in which some shareholders have limited liability to the company, while another shareholder has unlimited liability to the company. therefore. The two companies have the characteristics of a limited company and an unlimited company. Similarly, in China, it is not allowed to set up a two-in-one company.
The company is an enterprise legal person, has independent legal person property, and enjoys the legal person property rights. The company is responsible for the company's debts with all of its assets. The shareholders of a limited liability company shall be liable to the company within the limits of the capital contribution they have subscribed; the shareholders of the company limited by shares shall be liable to the company for the shares they subscribe for. In general, slightly larger companies exist in the form of companies.
Here, we should explain the concept of corporate legal person. According to the "General Principles of the Civil Law of the People's Republic of China", a legal person is an organization that has the capacity for civil rights and civil capacity, and enjoys civil rights and civil obligations independently according to law. An enterprise with legal person status is called an enterprise legal person, and the identification of corporate legal person qualification is determined by the industrial and commercial administration. Not all companies are legal persons. The so-called sole proprietorships and partnerships mentioned above are not legal persons because they do not have independent property and cannot independently assume legal rights and obligations. It should be emphasized that corporate legal persons and legal representatives of enterprises are different. The corporate legal person emphasizes the legal person, is a social organization, and the legal representative is a natural person. For example, some people say that the legal person of a certain enterprise is Zhang San. This is not true. It is a legal representative, not a corporate legal person.
1. The sole proprietorship of a company and a sole proprietorship enterprise is a company established by a single person, which is owned and controlled by one person and is under the responsibility of one person. The property relationship between the sole proprietorship and the company is different. The property of the sole proprietorship enterprise is owned by the sole proprietorship enterprise. The enterprise itself does not enjoy ownership, and the company has its own independent property, which forms the capital contribution with the shareholders. After the shareholders have contributed, the shareholders no longer have ownership of the capital contribution, and the company has ownership of the capital contribution.
A sole proprietorship enterprise shall assume unlimited liability by the sole proprietorship enterprise, that is, the business owner shall be responsible for the debt with all his personal property rather than only his investment and the property of the enterprise, and the company shall be solely responsible for its debts with the assets it owns. Shareholders only bear limited liability within the scope of the capital contribution.
2. A partnership between a company and a partnership refers to a for-profit organization consisting of two or more partners in accordance with a partnership agreement, each of which contributes to the joint operation. Partnerships include both individual partnerships and partnerships. The property of the partnership is owned by all partners, and the property of the company is not shared by the shareholders, but the company as an independent entity has ownership of the property. In the responsibility of liability, the partners bear unlimited liability for the partnership debt, that is, when the assets of the enterprise are insufficient to pay off the partnership debt, the partners are responsible for the debts they should share with their respective assets. The shareholders of the company bear limited liability for the company's debt.
The difference between a company and a company is mainly reflected in seven aspects:
1. The basis for establishment is different. The company was established on the basis of the charter, and the company was established on the basis of a partnership agreement. Of course, the agreement of the partnership agreement cannot be against a bona fide third party.
2. The relationship between the parties is different. Companies, especially joint stock companies, are typical partnerships between shareholders. Although limited liability companies have a certain degree of humanity, due to the existence of a limited liability system, the color of capital is more important. The partners of the enterprise are established by the relationship of people and human beings. Specifically, they are established on the basis of trust between people. Therefore, the dependency relationship between partners is relatively strong, and the credit degree is also required to be relatively high.
3. The status of the subject is different. The company is a legal person enterprise, which can independently bear civil liability with its own property; the enterprise does not have legal personality, so it cannot independently bear civil liability for the property of the enterprise. When the property of the enterprise is insufficient to pay the debt, it depends on the partner. Personal property to repay.
4. The responsibility for taking responsibility is different. The company's shareholders are all subject to limited liability, and the partners are responsible for unlimited joint liability.
5. The scale is different. The average size of an enterprise is relatively small, because it is established by the human credit base, and its scale cannot be too large. The company, especially the company limited by shares, will have a large scale and a large number of shareholders. Of course, some partnerships will be larger, but the average partnership is smaller than the company.
6. Different ways of funding. The partners of the company can use the labor to fund, but the shareholders of the company can't.
7. The requirements for registered capital are different. There is no minimum registered capital limit for enterprises, and there is a minimum capital limit for setting up a company. The legal minimum registered capital of a limited liability company is 100,000 yuan to 500,000 yuan. The legal minimum registered capital of a company limited by shares is 1000. Ten thousand yuan.
Some people say that the legal minimum registered capital of a limited liability company is 30,000 yuan, the legal minimum registered capital of a one-person limited liability company is 100,000 yuan, and the legal minimum registered capital of a company limited by shares is 5 million yuan.
8, the company's tax is different. Corporate income tax is levied on the company. Individual proprietorship enterprises are not the opposite of legal subjects, so they are not taxed, but individual income tax is imposed on corporate investors. Incidentally, a partnership enterprise is similar to a sole proprietorship enterprise. It only levies personal income tax on corporate partners and does not impose corporate income tax on the enterprise itself.
Entrepreneurs can choose the right form of business according to their actual situation, including investment quota, taxation and risk responsibility. For example, if the initial funds are small, you can register as a personal company, and you can re-register as a company when the funds are sufficient. If you want to pay less taxes, it is better to use a personal business. If you do not want to take the risk of business failure, it is better to register as a company.
Let us look at the concepts of sole proprietorships, partnerships and companies, all of which are discriminatory in the legal sense.
Individual proprietorship enterprise: refers to an operating entity established in China in accordance with the Law of the People's Republic of China on Individual Proprietorship, which is invested by a natural person, the property is owned by the investor, and the investor bears unlimited liability for the corporate debt with his personal property. The so-called self-employed individuals belong to such enterprises.
Partnership: refers to the general partnerships and limited partnerships established by natural persons, legal persons and other organizations in China in accordance with the Law of the Partnership Enterprise of the People's Republic of China. A general partnership is composed of general partners, who are jointly and severally liable for the debts of the partnership. A limited partnership consists of a general partner and a limited partner. The general partner assumes unlimited joint liability for the partnership debt, and the limited partner is liable for the partnership debt to the extent of its subscribed capital contribution. Some patent agencies are formed in the form of partnerships.
Company: According to the "Company Law of the People's Republic of China", "Company refers to a limited liability company and a company limited by shares established in China in accordance with this Law".
1. A limited liability company, referred to as a limited company, the shareholder is responsible for the company to the extent of its capital contribution, and the company is responsible for the company's debt with all its assets.
2. A company limited by shares, abbreviated as a joint-stock company, whose entire capital is divided into equal shares. The shareholders shall be liable to the company for the shares held by them, and the company shall be liable for the debts of the company with all its assets.
Regardless of the limited company or the joint-stock company, their biggest characteristic is that the shareholder's responsibility to the company is limited and limited by the amount of capital contribution. That is to say, when the company's assets are insufficient to repay the debts it owes, the shareholders do not need to bear the joint liquidity responsibility, that is, they do not need shareholders to pay off the debts for the company.
Compared with the limited company, an unlimited liability company means that the shareholder has unlimited joint liability for the company and its debt. In other words, if the company is unable to repay the debt, the shareholder is responsible for the liquidation. In China, it is not allowed to set up an unlimited liability company, but it is allowed to set up enterprises with unlimited liability, such as individual proprietorship enterprises and partnership enterprises. These companies are not independent legal entities, so they cannot be a company, and the business owners directly assume unlimited corporate responsibility.
In addition, there is another company called the two-in-one company, in which some shareholders have limited liability to the company, while another shareholder has unlimited liability to the company. therefore. The two companies have the characteristics of a limited company and an unlimited company. Similarly, in China, it is not allowed to set up a two-in-one company.
The company is an enterprise legal person, has independent legal person property, and enjoys the legal person property rights. The company is responsible for the company's debts with all of its assets. The shareholders of a limited liability company shall be liable to the company within the limits of the capital contribution they have subscribed; the shareholders of the company limited by shares shall be liable to the company for the shares they subscribe for. In general, slightly larger companies exist in the form of companies.
Here, we should explain the concept of corporate legal person. According to the "General Principles of the Civil Law of the People's Republic of China", a legal person is an organization that has the capacity for civil rights and civil capacity, and enjoys civil rights and civil obligations independently according to law. An enterprise with legal person status is called an enterprise legal person, and the identification of corporate legal person qualification is determined by the industrial and commercial administration. Not all companies are legal persons. The so-called sole proprietorships and partnerships mentioned above are not legal persons because they do not have independent property and cannot independently assume legal rights and obligations. It should be emphasized that corporate legal persons and legal representatives of enterprises are different. The corporate legal person emphasizes the legal person, is a social organization, and the legal representative is a natural person. For example, some people say that the legal person of a certain enterprise is Zhang San. This is not true. It is a legal representative, not a corporate legal person.
1. The sole proprietorship of a company and a sole proprietorship enterprise is a company established by a single person, which is owned and controlled by one person and is under the responsibility of one person. The property relationship between the sole proprietorship and the company is different. The property of the sole proprietorship enterprise is owned by the sole proprietorship enterprise. The enterprise itself does not enjoy ownership, and the company has its own independent property, which forms the capital contribution with the shareholders. After the shareholders have contributed, the shareholders no longer have ownership of the capital contribution, and the company has ownership of the capital contribution.
A sole proprietorship enterprise shall assume unlimited liability by the sole proprietorship enterprise, that is, the business owner shall be responsible for the debt with all his personal property rather than only his investment and the property of the enterprise, and the company shall be solely responsible for its debts with the assets it owns. Shareholders only bear limited liability within the scope of the capital contribution.
2. A partnership between a company and a partnership refers to a for-profit organization consisting of two or more partners in accordance with a partnership agreement, each of which contributes to the joint operation. Partnerships include both individual partnerships and partnerships. The property of the partnership is owned by all partners, and the property of the company is not shared by the shareholders, but the company as an independent entity has ownership of the property. In the responsibility of liability, the partners bear unlimited liability for the partnership debt, that is, when the assets of the enterprise are insufficient to pay off the partnership debt, the partners are responsible for the debts they should share with their respective assets. The shareholders of the company bear limited liability for the company's debt.
The difference between a company and a company is mainly reflected in seven aspects:
1. The basis for establishment is different. The company was established on the basis of the charter, and the company was established on the basis of a partnership agreement. Of course, the agreement of the partnership agreement cannot be against a bona fide third party.
2. The relationship between the parties is different. Companies, especially joint stock companies, are typical partnerships between shareholders. Although limited liability companies have a certain degree of humanity, due to the existence of a limited liability system, the color of capital is more important. The partners of the enterprise are established by the relationship of people and human beings. Specifically, they are established on the basis of trust between people. Therefore, the dependency relationship between partners is relatively strong, and the credit degree is also required to be relatively high.
3. The status of the subject is different. The company is a legal person enterprise, which can independently bear civil liability with its own property; the enterprise does not have legal personality, so it cannot independently bear civil liability for the property of the enterprise. When the property of the enterprise is insufficient to pay the debt, it depends on the partner. Personal property to repay.
4. The responsibility for taking responsibility is different. The company's shareholders are all subject to limited liability, and the partners are responsible for unlimited joint liability.
5. The scale is different. The average size of an enterprise is relatively small, because it is established by the human credit base, and its scale cannot be too large. The company, especially the company limited by shares, will have a large scale and a large number of shareholders. Of course, some partnerships will be larger, but the average partnership is smaller than the company.
6. Different ways of funding. The partners of the company can use the labor to fund, but the shareholders of the company can't.
7. The requirements for registered capital are different. There is no minimum registered capital limit for enterprises, and there is a minimum capital limit for setting up a company. The legal minimum registered capital of a limited liability company is 100,000 yuan to 500,000 yuan. The legal minimum registered capital of a company limited by shares is 1000. Ten thousand yuan.
Some people say that the legal minimum registered capital of a limited liability company is 30,000 yuan, the legal minimum registered capital of a one-person limited liability company is 100,000 yuan, and the legal minimum registered capital of a company limited by shares is 5 million yuan.
8, the company's tax is different. Corporate income tax is levied on the company. Individual proprietorship enterprises are not the opposite of legal subjects, so they are not taxed, but individual income tax is imposed on corporate investors. Incidentally, a partnership enterprise is similar to a sole proprietorship enterprise. It only levies personal income tax on corporate partners and does not impose corporate income tax on the enterprise itself.
Entrepreneurs can choose the right form of business according to their actual situation, including investment quota, taxation and risk responsibility. For example, if the initial funds are small, you can register as a personal company, and you can re-register as a company when the funds are sufficient. If you want to pay less taxes, it is better to use a personal business. If you do not want to take the risk of business failure, it is better to register as a company.
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