An enterprise unit refers to a social and economic organization that establishes an independent legal person or unincorporated organization to engage in production and operation for the purpose of making profits. China's Company Law stipulates that a company can take the following forms: 1. Limited liability company: established by two or more shareholders and not more than 50 shareholders, and shall bear the responsibilities within the limit of capital contribution; 2. Joint stock limited company: raising funds by issuing shares, and shareholders bear limited liability to the company; 3. Collective-owned enterprises: enterprises in which two or more natural persons or other organizations * * * jointly contribute capital, * * * work together, * * * share profits and * * * share responsibilities; 4. State-owned enterprises: enterprises established by the state or by purchasing the equity of private enterprises through state investment; 5. Foreign-invested enterprises refer to enterprises in which foreign investors or foreign natural persons invest and engage in economic activities in China. In addition, there are partnerships, individual industrial and commercial households, farmers' professional cooperatives and other forms of enterprise units.
What's the difference between business units and other organizations? Compared with other non-profit organizations, institutions are for-profit organizations, aiming at pursuing commercial profits. Enterprises usually earn income by selling goods or providing services, and make profits by managing costs and improving efficiency. Other non-profit organizations mainly aim at supporting public welfare undertakings, and generally obtain funds through fundraising and other means. In addition, enterprises are more flexible than other non-profit organizations and can adopt more diversified business strategies and management methods.
Enterprise units are profit-making economic organizations, including limited liability companies, joint-stock companies, collectively-owned enterprises, state-owned enterprises and foreign-invested enterprises. Understanding the different forms of enterprise units is of great significance to the choice and management of enterprises.
Legal basis:
Company Law of People's Republic of China (PRC) Article 1 This Law is formulated for the purpose of regulating the organization and behavior of companies, protecting the legitimate rights and interests of companies, shareholders and creditors, maintaining social and economic order and promoting the development of socialist market economy. Article 2 The term "company" as mentioned in this Law refers to limited liability companies and joint stock limited companies established in China according to this Law. Article 3 A company is an enterprise legal person, which has independent legal person property and enjoys legal person property rights. The company is liable for its debts with all its property. Shareholders of a limited liability company shall be liable to the company to the extent of their subscribed capital contribution; Shareholders of a joint stock limited company shall be liable to the company to the extent of the shares subscribed by them.