What are the differences between registering a company and registering an individual business owner? What is the difference between registering a company and registering an individual business owner?:1、Different investment entities。The investment subject of a one-person limited liability company can be a natural person,It can also be a legal person;The investment subject of an individual industrial and commercial household can only be a natural person。2、different legal forms。A one-person limited liability company is a legal civil subject,Have legal personality;Individual industrial and commercial households do not have legal personality。3、Different establishment conditions。
The minimum registered capital of a one-person limited liability company is RMB 100,000 (no limit after the capital subscription system),Shareholders shall pay the capital contribution amount stipulated in the company's articles of association in one lump sum;There is no legal minimum limit on registered capital for the establishment of individual industrial and commercial households.,Only investors need to declare their capital contribution。
in addition,The amount of monetary contribution of a one-person limited liability company shall not be less than 30% of the registered capital of the limited liability company.,However, individual industrial and commercial households do not have any mandatory provisions on the form of investment.。4、Tax collection regulations are different。A one-person limited liability company shall comply with tax law regulations,Need to pay corporate income tax,Individual industrial and commercial households do not need to pay corporate income tax,Only need to pay personal income tax。
"Notice of the State Council on the Collection of Personal Income Tax by Individual Industrial and Commercial Households and Partnership Enterprises" stipulates,Sole traders and partnerships from January 1, 2000,Stop collecting corporate income tax,Personal income tax is levied on the production and business income of individual industrial and commercial households。5、Investors have different responsibilities。
The shareholders of a one-person limited liability company shall bear liability only up to the amount of their subscribed capital contribution.”limited liability”,The shareholders alone are jointly and severally liable for the company's debts if they cannot prove that the company's property is independent of the shareholders' own property.;Investors in individual industrial and commercial households bear unlimited liability for corporate debts with their personal property.,The investor clearly states that his family’s common property will be used as his personal capital contribution when applying for enterprise registration.,The family's joint property should bear unlimited liability for corporate debts in accordance with the law。
6、financial accounting
Require
different。A one-person limited liability company shall prepare a financial accounting report at the end of each fiscal year,and audited by an accounting firm;Individual industrial and commercial households only need to set up accounting books in accordance with the law to conduct accounting,No need to be audited by an accounting firm。The evolutionary chain of market competition entities is generally:Sole proprietorship (personal business)、Family business) → Individual business owner → One-person limited liability company → Joint stock company。
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