What is the difference between company formation and company formation

First, the concept is different.

The concept of company formation has been mentioned earlier. The establishment of a company refers to a state in which the company is established in essence in accordance with the Company Law, completes the application for establishment and registration procedures, and obtains the status of a legal person after being reviewed and issued a license by the registration authority.

Second, the nature is different.

The establishment of a company is the establishment of the promoters of the organization company, both legal and non-legal; There are civil juristic acts, as well as administrative juristic acts. The establishment of a company is not an act, but a state in which the company has obtained legal personality, and is a manifestation of the company's legal identity.

3. The effect is different.

After the establishment of a company, it can obtain the exclusive right to use the company's legal personality and company name, etc., while the establishment of a company does not have the above-mentioned personality and rights.

The connection between the establishment of a company and the establishment of a company is that the establishment of a company is a prerequisite for the establishment of a company, and the establishment of a company is the purpose and legal consequences pursued by the establishment of a company. Incidentally, some scholars describe the nature of company formation as a public law (state) administrative act.

The inappropriateness lies in the confusion between company formation and company registration. From the perspective of the actions of the competent authority or the company registration authority, company registration is an administrative disposition of the company for examination and licensing; The establishment of a company is a legal consequence of the registration of the company, which is a state of confirmation of the legal personality of the company, rather than an act, let alone an administrative act (of the state).

The differences between company formation and company formation are as follows:

1. The stages of occurrence are different.

The establishment and establishment of a company are two different stages in a series of successive acts in the process of obtaining the qualification of the company: the establishment of a company occurs before the issuance of the business license; The establishment occurs when the registration is approved and the business license is issued in accordance with the law. In essence, the establishment of a company is a legal consequence that exists in accordance with the law after the act of establishment is recognized by law.

2. The nature of the act is different.

The act of establishment is based on the expression of intent of the initiator, which is mainly a legal act, and is guided by the basic principles of civil and commercial law, such as equality, voluntariness, and good faith. The establishment of a company is based on the issuance of a business license by the competent authority, which occurs between the promoter and the competent registration authority, and is an administrative act.

3. The legal effect is different.

Before the company is approved for registration, it is called a company under establishment, and the company does not yet have independent subject qualifications, and its internal and external relationships are generally regarded as partnerships. If the company is not approved for registration in the end, the consequences of the establishment act shall be applied by analogy to the provisions on partnership, and the founders shall be jointly and severally liable for the establishment acts; If the company is approved for registration, the consequences of the legal acts carried out by the promoters for the purpose of establishment shall in principle be attributed to the company. The establishment of a company makes the company an independent entity, and the consequences of the acts carried out after the establishment of the company shall be borne by the company in principle.

4. Different legal characteristics.

The main body of the establishment is the initiator. Initiators include natural persons, legal persons and states that make capital contributions in advance, prepare for establishment, and assume responsibility for the establishment of the company. In the process of company establishment, the promoter performs the establishment business internally and represents the company being established externally.

The act of establishment can only take place before the establishment of the company, and the statutory conditions and procedures should be strictly followed. The purpose of the act of establishment is to eventually establish a company and obtain the qualification of a legal entity. In essence, company registration is still an act of company establishment, and company establishment can be said to be the legal consequence of company establishment and company registration.

As for the date of incorporation of the company, it is generally based on the date of issuance of the company's business license, not the time when the company's name is approved.

What is the difference between company formation and company formation?

Company setup refers to a series of activities by which the promoter creates a company, which is a process. The establishment of the company means that the company has obtained the legal personality and obtained the right and ability to conduct production and business activities in accordance with the law. In fact, it can be understood that the establishment of a company is the premise of the establishment of a company, and the establishment of a company is the result of the establishment of a company.

The specific differences between the two are: (1) the nature of the acts is different. The establishment of a company refers to the establishment of the initiator in accordance with the relevant legal conditions and procedures, which is a civil act.

The establishment of a company mainly refers to the administrative act of approval and registration by the administrative authority for industry and commerce triggered by the establishment of the promoter, and the establishment of the company is the goal pursued by the establishment act. (2) The effect of the act is different. Although the premise of company formation is the establishment of a company, the establishment of a company does not necessarily lead to the establishment of a company.

Even after the company has completed all the establishment acts, if the company still cannot be established before obtaining the business license issued by the industrial and commercial authorities, it will not be able to enjoy the rights and capacity to act, and it will not be able to conduct transactions in its own name. The establishment of the company means that it has immediately obtained the status of an independent civil subject and can engage in production and business activities in accordance with the law. (3) The actors are different.

The main actor of the act of company establishment is the initiator. The establishment of a company is the result of the joint action of the promoter's act and the administrative act, so the subject of its establishment includes the industrial and commercial administrative authority and the promoter.

Legal basis: Article 7 of the Company Law.

For a company established in accordance with the law, a business license shall be issued by the company registration authority. The date of issuance of the company's business license is the date of incorporation of the company.

The company's business license shall indicate the company's name, domicile, registered capital, business scope, name of legal representative, and other matters.

If there is a change in the items recorded in the company's business license, the company shall go through the change registration in accordance with the law, and the company registration authority shall renew the business license.

1. The difference between company establishment and company establishment There are three main differences between company establishment and company establishment:

a) The time is different. The act of incorporation occurs before the incorporation of the company, but the act of incorporation does not necessarily lead to the consequences of the incorporation of the company.

Second, the nature is different. The incorporation of a company is an act, while the incorporation of a company is the legal consequences and factual state of the act of incorporation.

3. The effect is different. The establishment of the company only constitutes a prerequisite for the establishment of the company, and no new rights subject is created in the establishment stage, and the promoter shall not engage in business and other civil legal acts in the name of the company, and the initiator shall be responsible for repaying the debts incurred by the establishment of the company; The establishment of the company means the creation of a legal entity, which can engage in civil activities in the name of Gongming Slippery Division after its establishment, and its legitimate rights and interests are protected by the corresponding law.

Second, the situation of the failure of the establishment of the company, the failure of the establishment of the company, including the inability of the establishment of the company and the invalidity of the establishment of the company

1. The so-called company establishment cannot mean that the company cannot be established due to some reason in the process of company establishment.

2. The so-called invalidity of the establishment of the company refers to the invalidity of the establishment of the company because the establishment of the company violates the law because the establishment of the company is invalid.

3. Why is there an invalid establishment of a company: the establishment of a company is absolutely invalid, and the absolute invalidity of the establishment of a company refers to the invalidity of the establishment of a company due to the lack of substantive requirements. The reasons for the absolute invalidity of the establishment of the enterprise are:

1) The incorporator of the company does not meet the requirements. For example, the incorporator of the company does not have full capacity, does not possess specific qualifications, and is less than the quorum;

2) The articles of association of the company lack the absolutely necessary items to be recorded, or violate public order and good customs or mandatory provisions of the law;

3) The initiator fails to convene the founding meeting or the founding meeting resolves that the establishment of the company is invalid;

4) The company registration is invalid or the company engaged in a specific business has not been approved by the competent authority. In the second case, the establishment of the company is relatively invalid. The relative invalidity of the establishment of a company refers to the act of revoking or correcting the defects at the time of the establishment of the company. The main reasons for the relative defects in the establishment of the company are:

1) False capital contribution and false capital contribution;

2) There is no fixed production and operation site and production and operation conditions;

3) Without legal procedures.