How to set up a sole proprietorship or partnership

To start a business, register the type of company that suits you.

Legal Analysis: A sole proprietorship is not a partnership. The difference between a sole proprietorship and a partnership is mainly reflected in the number of people.

A sole proprietorship is invested by a natural person, the property is owned by the investor, and the investor bears unlimited liability for the debts of the enterprise with his personal property.

Legal basis: "Law of the People's Republic of China on Sole Proprietorship Enterprises" Article 2 The term "sole proprietorship enterprise" as used in this Law refers to a business entity established in China in accordance with this Law, 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.

Legal Analysis: Yes. "Partnership" refers to general partnerships and limited partnerships established by natural persons, legal persons and other organizations within the territory of China in accordance with this Law.

Legal basis: Article 16 of the Company Law of the People's Republic of China Article 16 If a company invests in other enterprises or provides guarantees for others, it shall be resolved by the board of directors or the shareholders' meeting or the general meeting of shareholders in accordance with the provisions of the articles of association; Where the articles of association of the company stipulate a limit on the total amount of investment or guarantee and the amount of a single investment or guarantee, it shall not exceed the prescribed limit. If the company provides a guarantee for the company's shareholders or actual controllers, it must be resolved by the shareholders' meeting or the general meeting of the company.

Sun Dan, the shareholder provided for in the preceding paragraph, or the shareholder under the control of the actual controller provided for in the preceding paragraph, must not participate in the voting on the matters provided for in the preceding paragraph. The vote is passed by a majority of the voting rights held by the other shareholders present at the meeting.

A sole proprietorship refers to a business entity established in China in accordance with the Sole Proprietorship Enterprise Law, 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. Partnership refers to a for-profit organization in which each partner enters into a partnership agreement, makes joint contributions, operates in partnership, shares profits and risks, and bears unlimited joint and several liability for the debts of the partnership enterpriseGeneral partnership refers to a for-profit organization established in China in accordance with the Partnership Enterprise Law in which the partners enter into a partnership agreement, jointly contribute, operate in partnership, share profits and share risks, and bear unlimited joint and several liability for the debts of the partnership.

What is the difference between a sole proprietorship and a partnership?

The difference between a sole proprietorship and a partnership is mainly reflected in the number of people, a sole proprietorship is only a business established by one person, while a partnership should be established by more than two people. It is because of the large number of partners in the partnership, in order to protect the rights and interests of each partner, the relevant provisions are more complicated, and there are detailed provisions on the partners' entry and withdrawal, management rights, dividends, etc., in view of the purpose of this article.

In addition, partnerships can be divided into general partnerships, special general partnerships and limited partnerships, general partnerships are more common, and most partnerships are general partnerships; Special general partnerships are mainly used for professional institutions, such as accounting firms; Common limited partnerships such as private equity investments (described above). However, because sole proprietorship does not involve the interests of multiple people, the regulations are relatively simple, and there are no multiple types, which are suitable for projects with simple business models and low investment.

Legal basis: Article 2 of the Law on Sole Proprietorship Enterprises defines a business entity established in China in accordance with this Law, 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.

OK. A sole proprietorship is an enterprise that is owned and controlled by an individual, bears the operating risks and enjoys all the operating benefits. A sole proprietorship that operates as a sole proprietorship has unlimited financial liability, and the borrower can withhold the owner's personal property in the event of bankruptcy.

1. What are the provisions of the law on sole proprietorship enterprises and enterprise investors?

The law stipulates that a sole proprietorship enterprise refers to a reformed enterprise that is funded and operated by an individual, owned and controlled by an individual, and is owned and controlled by an individual, and is subject to the individual's business risks and all operating benefits. An enterprise investor is an investment entity relative to the investment object, and the investment entity has the right to make decisions on the investment direction and investment amount. Sufficient investment funds**; They have the right to own and control the assets formed by their investments, and can operate them independently or by entrusting others.

2. Can a sole proprietorship company add shareholders?

No. A sole proprietorship company cannot increase shareholders, and if it increases shareholders, it can only apply for ****. A sole proprietorship enterprise refers to a business entity established in China in accordance with the Sole Proprietorship Enterprise Law, 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.

Three, is it the same for a private sole proprietorship and a sole proprietorship?

It's not the same. Difference Between Private Sole Proprietorship and Sole Proprietorship:

1) Sole proprietorship is unlimited liability, and sole proprietorship is limited liability;

2) Sole proprietorship enterprises pay individual income tax, and sole proprietorship enterprises pay enterprise income tax;

3) A sole proprietorship is an unincorporated enterprise, and a sole proprietorship is a legal person.

A private sole proprietorship refers to a private enterprise invested and operated by one person. Sole proprietorship investors have unlimited liability for corporate debt. The investor of a sole proprietorship is a natural person, who is both the owner and the operator, and enjoys the benefits of the enterprise alone and bears all the risks in accordance with the law.

Sole proprietorship does not need to be registered in many parts of the world.

Sole proprietorship is a very old form of business, which is widely used in business operations, and its typical characteristics are individual contributions, individual management, individual self-responsibility for profits and losses, and personal risk. Sole proprietorship is the product of the development of commodity economy, whether in developed or developing countries, sole proprietorship is a common mode of operation, with its small scale, flexible mode of operation, and strong complementarity to social life, to meet the needs of social life.

Article 58 of the Company Law of the People's Republic of China provides that a natural person can only invest in the establishment of a one-person limited liability company.

How about registering a sole proprietorship or partnership? So how do you choose between the two? I believe that these questions are also the questions that many entrepreneurs are thinking about. Let's introduce the characteristics of the two to your reference

A sole proprietorship is a business entity that is invested, created and operated by a single person, the property is owned by the investor, and the investor bears unlimited liability for the debts of the enterprise with his personal property. It has these characteristics:

1. There is only one investor;

2. The investor owns all the property of the enterprise, but needs to bear unlimited liability for the debts of the enterprise;

3. There is no need to pay corporate income tax to **, but personal income tax is required;

4. It does not have the status of a legal person.

A partnership is a business entity organized by two or more investors who jointly contribute, operate together, share profits and share risks. It has these characteristics:

1. There are more than two partners;

2. Based on a written partnership agreement. Each partner has rights under the partnership agreement and has unlimited liability for the debts of the partnership.

3. Each partner can contribute capital in the form of money, intangible assets, etc., and the major affairs and decisions of the enterprise must be unanimously agreed by all partners.

4. The profits and losses of the enterprise shall be distributed and shared by each partner in accordance with the proportion of the agreement.

1. The banquet structure of a sole proprietorship enterprise is simple and simple, and the individual enjoys exclusive profits and has fewer restrictions. However, it needs to bear unlimited responsibility, personal financial resources are limited, and when raising funds, it may be rejected because of insufficient credit, so that the enterprise cannot get better development.

2. Partnerships are also easy to set up, with many shareholders, so credit is better than that of sole proprietorships, but it also needs to bear unlimited liability for debts, and decision-making also needs to be unanimously agreed by all shareholders, and the process is difficult.

Through the above comparison, can you make a decision? Do you want to register a sole proprietorship or a registered partnership? I believe that everyone needs to think about it if they want to make a decision.

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Partnership refers to the form of enterprise organization established by natural persons, legal persons and other organizations in China in accordance with the Partnership Enterprise Law of the People's Republic of China, in which two or more natural persons jointly contribute capital to operate, share profits and losses, and share risks through the conclusion of a partnership agreement. The differences between a sole proprietorship partnership are:1

The number of investors and the form of ownership of enterprise property are different. A sole proprietorship is an investment made by a natural person and is an act of a person, and the property of the enterprise is owned by the investor; A partnership is not the act of a single person, it must be established and operated jointly by two or more partners, and the property of the enterprise is jointly owned by the partners and jointly managed and used by all partners. 2.

Responsibilities are different. A sole proprietorship is an investor's investment, and the property and profits belong to the investor, so he has unlimited liability for the enterprise; The property of the partnership is formed by the capital contribution of each partner, and in the joint operation, it is required to share the risk, and each partner is required to bear unlimited joint and several liability for the debts of the partnership. 3.

Corporate affairs are managed differently. The investor of the sole proprietorship has the final decision on the management of the enterprise's affairs, and the investor makes its own decision-making on its own. The establishment of the company is premised on the conclusion of a partnership agreement by each partner, and the partners jointly contribute capital and operate together, and the management of corporate affairs can be jointly carried out by all partners, or by the agreement of the partners or decided by all partners, and one or more partners are entrusted to execute, but major matters are still jointly decided by all partners. 4.

There are different ways to transfer investments. Sole proprietorship enterprises cannot be separated, and investors can only transfer their investments or withdraw their capital through a complete transfer of the enterprise or the dissolution of the enterprise; In the case of a partnership that transfers the property of an old enterprise, the partners can either transfer their share of the property in the partnership to other partners or to a third party other than the partners with the consent of all partners, or transfer their property by withdrawing from the partnership.