Legal analysis: a sole proprietorship enterprise takes an individual as the investor and assumes unlimited joint and several liability for the debts of the enterprise; Joint-stock enterprises are issued at the par value of the shares that should be paid, and are liable for the contracted debts of the enterprises according to the ownership ratio of the shares. Of course, the profit distribution is based on the shares they hold. The profits and risks of a sole proprietorship enterprise shall be borne by the same person, and those of a joint-stock enterprise shall be shared by all shareholders. Sole proprietorship enterprises are generally registered in the mainland, and there is little difference in tax according to state regulations. A joint-stock company refers to a form of enterprise organization in which two or more stakeholders voluntarily combine and exist in the form of joint-stock operation. It is an enterprise organization form that adapts to the needs of socialized mass production and market economy development, realizes the relative separation of ownership and management rights, and is conducive to strengthening enterprise management functions. The characteristics of joint-stock enterprises are as follows: issuing shares as a voucher for shareholders to buy shares, on the one hand, obtaining dividends, on the other hand, participating in the operation and management of enterprises; Establish the internal organizational structure of the enterprise. The shareholders' meeting is the highest authority of the joint-stock enterprise, the board of directors is the permanent institution of the highest authority, and the general manager presides over the daily production and business activities; The responsibility of taking risks, the ownership income of joint-stock enterprises is scattered, and the operating risks are shared by many shareholders. With a strong dynamic mechanism, many shareholders care about the operation of enterprise assets from the perspective of interests, which makes the major decisions of enterprises tend to be optimized, and the development of enterprises can be based on the interest mechanism. A sole proprietorship company is only a private limited company with a registered capital of 654.38 million yuan. Individual proprietorship pays individual income tax; Joint-stock system pays enterprise income tax. Other things being equal, other taxes remain unchanged.
Legal basis: Law of People's Republic of China (PRC) Municipality on Wholly Owned Enterprises.
Article 8 The establishment of a sole proprietorship enterprise shall meet the following conditions:
(1) The investor is a natural person;
(2) Having a legal enterprise name;
(3) The amount of capital contribution declared by the investor;
(4) Having a fixed place for production and business operation and necessary conditions for production and business operation;
(5) Having necessary employees.
Article 9 To apply for the establishment of a sole proprietorship enterprise, the investor or his entrusted agent shall submit the application for establishment, the identity certificate of the investor, 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 an entrusted agent applies for registration of establishment, it shall issue the power of attorney of the investor and the legal certificate of the agent.
A sole proprietorship enterprise shall not engage in business prohibited by laws and administrative regulations; To engage in business that must be reported to the relevant departments for examination and approval according to laws and administrative regulations, the approval documents of the relevant departments shall be submitted when applying for establishment registration.
Article 10 An application for the establishment of a sole proprietorship enterprise shall contain the following items:
(1) The name and domicile of the enterprise;
(2) The name and domicile of the investor;
(3) The amount and mode of investment made by investors;
(4) Business scope.