Is there a minimum capital limit for the establishment of a sole proprietorship in China?

Although the state has strict requirements for the minimum registered capital of enterprise legal persons, the Sole Proprietorship Enterprise Law does not have a restriction on the minimum registered capital of a sole proprietorship. The tax is paid at an excess progressive rate of 5% to 35% for personal income tax. That is, if the annual income exceeds 50,000 yuan, you have to pay 35%.

On January 1, 2000, the Law of the People's Republic of China on Sole Proprietorship Enterprises came into effect. There is a ** report: A person, one yuan, his own home, can register a company and be his own boss.

First of all, compared with the Company Law, the object of adjustment of the Sole Proprietorship Law is the sole proprietorship enterprise, that is, the private enterprise and the individual industrial and commercial household in the traditional sense, so it is not a company, and the company is the object of the adjustment of the Company Law. Secondly, the Sole Proprietorship Law has no restrictions on the minimum registered capital of a sole proprietorship. This is probably the natural basis for "one yuan can register a company", right?

It is true that since there is no minimum registered capital, in the abstract, one yuan or one penny can also register a sole proprietorship. In reality, of course, this is impossible. Think about it, who wants to do business with a company with a registered capital of only one yuan!

How to solve creditor's rights and debts?

There is no minimum capital limit for the establishment of a sole proprietorship, and the minimum capital for one person is 100,000 yuan.

Legal analysis: the registration of a private sole proprietorship implements a declaration system for the registered capital, and there is no minimum basic requirement;

Basic requirements for the registration of a private sole proprietorship:

1) The investor is a natural person;

2) Have a legal business name;

3) Capital contribution declared by investors;

4) Have a fixed production and operation site and necessary production and operation conditions;

5) Have the necessary practitioners.

Legal basis: Article 8 of the Law of the People's Republic of China on Sole Proprietorship Enterprises? The establishment of a sole proprietorship shall meet the following conditions:

1) The investor is a natural person;

2) Have a legal business name;

3) There is an investor's capital contribution to destroy the side report;

4) There are fixed production and business premises and necessary production and operation conditions;

5) Have the necessary practitioners.

Article 9? To apply for the establishment of a sole proprietorship enterprise, the investor or the person entrusted by the investor shall submit the application for establishment, the investor's identity certificate, the certificate of use of the production and business premises and other documents to the registration authority where the sole proprietorship enterprise is located. When the entrusting person applies for establishment registration, it shall issue the power of attorney of the investor and the legal certificate of the person.

There is no registered capital for sole proprietorship, and only limited liability companies and shares have registered capital. The registered capital of a limited liability company is the amount of capital contribution subscribed by all shareholders registered with the company registration authority.

Article 26 of the Company Law of the People's Republic of China The registered capital of a limited liability company shall be the amount of capital contribution subscribed by all shareholders registered with the company registration authority. Where laws, administrative regulations on the destruction of slag, and the decision of the limited liability company have other provisions on the paid-in registered capital and the minimum amount of registered capital, follow those provisions. Article 80 of the Company Law of the People's Republic of China If the shares are established by initiating establishment, the registered capital shall be the total amount of share capital subscribed by all the promoters registered with the company registration authority.

No shares shall be raised from others until the shares subscribed by the promoter are fully paid. If the shares are established by way of raising, the registered capital shall be the total paid-in share capital registered with the company registration authority. If laws, administrative regulations and the minimum amount of registered capital of the shares are otherwise stipulated, such provisions shall prevail.

Legal Analysis: A sole proprietorship enterprise refers to a business entity established in China in accordance with the 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. There is no legal requirement for registered capital, but at least 1 yuan is obtained, and no capital verification is required, as long as you declare it yourself.

At the time of registration, the "Application for the Establishment of a Sole Proprietorship Enterprise" filled in has a "capital contribution amount and capital contribution method of the investor" project, which is filled in casually, which can be 10,000 or 100,000, which is quietly declared, and the industrial and commercial department does not need to prove that it has so many funds.

Legal basis: Company Law of the People's Republic of China

Article 28 Shareholders shall pay in full and on time the amount of capital contributions subscribed by them as stipulated in the articles of association. If the shareholder makes a monetary contribution, the full amount of the monetary contribution shall be deposited into the bank account opened by the limited liability company; Where non-monetary assets are used to make capital contributions, the formalities for the transfer of property rights shall be completed in accordance with law. If a shareholder fails to pay the capital contribution in accordance with the provisions of the preceding paragraph, in addition to paying the full amount to the company, it shall also bear the liability for breach of contract to the shareholder who has paid the capital contribution in full on time.

Article 200 Where the promoters or shareholders of a company make false capital contributions, fail to deliver or fail to deliver the monetary or non-monetary assets used as capital contributions on time, the company registration authority shall order them to make corrections and impose a fine of not less than 5% but not more than 15% of the amount of the false capital contributions.

In fact, there is no legal requirement for the minimum capital of a registered sole proprietorship, but at least one yuan, no capital verification is required, as long as you declare yourself. A sole proprietorship enterprise refers to a business entity established in China in accordance with the 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. When registering, the "Application for the Establishment of a Sole Proprietorship Enterprise" that needs to be filled in has a "capital contribution amount and capital contribution method of the investor", which is filled in casually, which can be 10,000 yuan or 100,000 yuan, which is self-declared and does not need to be verified.

2. What are the requirements for the registered capital of a sole proprietorship enterprise and what are the documents to be submitted for the application for establishment.

1) Application for the establishment of a sole proprietorship signed by the investor;

2) Proof of identity of the investor;

3) Proof of domicile of the enterprise;

4) Other documents required to be submitted by the State Administration for Industry and Commerce.

3. What is the legal status of a sole proprietorship?

The legal status of a sole proprietorship is concentrated in the fact that it does not have an independent legal personality and does not have the status of a legal person, which is a typical unincorporated enterprise. According to the theory of legal personality, the personality of civil subjects is divided into natural person personality and legal personality, and the sole proprietorship enterprise itself is not an independent legal subject and does not have legal personality, and its civil or commercial activities are carried out in the personal personality or subject capacity of the sole business owner, which is essentially an organizational form of natural person group engaged in commercial operations. In the classification of commercial entities, listed entities are divided into commercial entities.

Commercial legal persons and commercial partnerships, sole proprietorship enterprises belong to the business individuals. In the composition of a limited liability company, there is a special form of company formation, which is a sole proprietorship. In real life, many small and micro enterprises are sole proprietorships, controlled by one person, and all the profits of the enterprise are owned by individuals.

Fourth, what are the characteristics of a sole proprietorship?

1) The establishment and dissolution procedures of the enterprise are simple.

2) Flexible and free operation and management. Business owners can determine their business strategies and make management decisions based solely on their personal will.

3) The owner has unlimited liability for the debts of the business. When the assets of the business are insufficient to pay off its debts, the owners pay the debts of the business with their personal property. It is conducive to protecting the interests of creditors, but sole proprietorship is not suitable for high-risk industries.

4) The scale of the enterprise is limited. The limited operating income of a sole proprietorship, the limited personal property of the business owner, and the limited work energy and management level of the business owner all restrict the expansion of the scale of business operations.

5) Lack of reliability in the presence of the enterprise. The survival of a sole proprietorship depends entirely on the personal gains and losses of the business owner, and the life span of the enterprise is limited. In the modern economy and society, sole proprietorship plays an important role.