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home page > Entrepreneurial necessity > How to handle a sole proprietorship enterprise

How to handle a sole proprietorship enterprise

Source: www.qierge.net Author: Qi Erge Time: 2023-06-22 14:59 Views: 1406

1、 How to handle a sole proprietorship enterprise

To apply for the establishment of a sole proprietorship enterprise, the sole proprietor or his/her entrusted agent shall submit the application for establishment, the identity certificate of the sole proprietor, the certificate of use of the production and business premises and other documents to the registration authority where the enterprise is located. The application for the establishment of a sole proprietorship enterprise shall contain the following contents: the name and address of the enterprise, the name and residence of the investor, the amount of capital contribution, the method of capital contribution and the scope of business of the investor. If the principal applies for registration of establishment, the power of attorney of the investor and the legal certificate of the agent are also required. If they are engaged in businesses that are required by laws and regulations to be submitted to the relevant departments for approval, they shall also submit the approval documents of the relevant departments at the time of application.

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The registration authority starts from the date of receiving the application documents for establishment fifteen Within days, those meeting the specified conditions shall be registered and issued with business licenses ; Those that do not meet the conditions shall not be registered and a written reply shall be given to explain the reasons. The date of issuance of the business license of a sole proprietorship enterprise shall be the date of establishment of the sole proprietorship enterprise. Prior to obtaining the business license, the sole proprietor may not engage in business activities in the name of a sole proprietorship enterprise. If the registration authority fails to register or fails to respond to the application that meets the legal conditions after the time limit expires, the party concerned may apply for administrative reconsideration or file an administrative lawsuit according to law.

2、 What is the difference between a one-man limited company and a sole proprietorship

one Different investors

The investor of a one person limited liability company can be a natural person or a legal person ; The investor of a sole proprietorship enterprise can only be a natural person.

two Different legal forms

A one person limited liability company is a legal civil subject and has the status of a legal person ; However, a sole proprietorship enterprise is an organization without legal person status. The name of a one person limited liability company should contain the words "limited liability company", while the name of a sole proprietorship enterprise cannot be called a company.

three Different establishment conditions

The shareholders shall pay the capital contribution specified in the Articles of Association in full at one time ; The establishment of a sole proprietorship enterprise is not limited by the minimum amount of legal registered capital, and only requires "capital contribution declared by the investor". In addition, the monetary capital contribution of a one person limited liability company shall not be less than the prescribed proportion of the registered capital of the limited liability company. The sole proprietorship enterprise has not made any mandatory provisions on the form of capital contribution.

four Different tax collection regulations

In accordance with the tax law, a one person limited liability company needs to pay enterprise income tax, while a sole proprietorship enterprise does not need to pay enterprise income tax, but only needs to pay individual income tax.

five Different responsibilities of investors

The shareholders of a one person limited liability company shall bear the liability to the extent of their subscribed capital contribution "Limited liability" means joint and several liability for the debts of the company only when the shareholders cannot prove that the company's property is independent of their own property ; The sole proprietor of a sole proprietorship enterprise shall bear unlimited liability for the debts of the enterprise with his personal property. If the sole proprietor clearly uses his family's common property as his personal capital contribution when applying for the registration of the establishment of the enterprise, he shall bear unlimited liability for the debts of the enterprise with his family's common property according to law.

3、 Advantages and disadvantages of sole proprietorship

one Advantages of sole proprietorship

Sole proprietorship is the most original and classical form in the enterprise system sequence, as well as the main enterprise organization form of private enterprises. Its main advantages are :

(1) The ownership, control, management and income of enterprise assets are highly unified. This is conducive to keeping secrets related to the operation and development of the enterprise, and is conducive to the development of the entrepreneurial spirit of the owner.

(2) The owners of enterprises are responsible for their own profits and losses and unlimited liability for the debts of enterprises, which has become a tough budget constraint. The quality of enterprise operation is closely related to the owner's personal economic interests and even life, so the owner will try his best to run the enterprise well.

(3) The external laws and regulations of the enterprise have less restrictions on the operation and management, decision-making, entry and exit, establishment and bankruptcy of the enterprise.

two Disadvantages of sole proprietorship

(1) It is difficult to raise a large amount of funds. Because a person's capital is ultimately limited, it is also difficult to borrow money in the name of an individual. Therefore, sole proprietorships limit the expansion and large-scale operation of enterprises.

(2) Investors have huge risks. The owners of enterprises bear unlimited responsibility for the enterprises, which not only hardens the budget constraints of enterprises, but also brings about the problem that the owners bear too much risk, thus limiting the owners' investment activities in departments or fields with high risks. This is extremely unfavorable to the formation and development of emerging industries.

(3) The continuity of enterprises is poor. The highly unified property right structure of enterprise ownership and management rights, although it enables the enterprise to have full autonomy, it also means that the enterprise is a natural person's enterprise. The illness and death of the owner, and the lack of knowledge and ability of his personal and family members may lead to the bankruptcy of the enterprise.

(4) The basic relationship within the enterprise is the employment labor relationship. The difference between the interests and goals of both labor and capital constitutes a potential danger to the efficiency of the internal organization of the enterprise.

How to handle a sole proprietorship enterprise I hope this article will be helpful to you. If you have already figured out the company name and want to know whether the industrial and commercial verification can be passed, please click here: For interaction with us, please pay attention to Qierge222, which is more convenient for the company to name, verify, test, and generate business scope!

   How to handle a sole proprietorship enterprise

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