Private enterprises are profit-making economic organizations invested or controlled by natural persons and based on wage labor. Private enterprises are all enterprises except state-owned enterprises, state-owned assets holding enterprises and foreign-invested enterprises in China. The property right of a private enterprise belongs to a natural person, which can be a sole proprietorship enterprise, partnership enterprise, limited liability company or joint stock limited company. The concept of private enterprises includes private enterprises and other non-state-owned and non-foreign-funded enterprises.
Classification of company nature:
1. Definition difference: A private company refers to a company established by private capital investment; Private companies usually refer to companies established by individual or family capital investment;
2. Ownership structure: the ownership of private enterprises may be scattered and there may be multiple shareholders; The ownership of private companies is usually concentrated in the hands of individuals or families;
3. Business scope: Private companies may involve multiple industries or fields; Private enterprises have a relatively small business scope and usually focus on specific industries or markets;
4. Capital scale: the capital scale of private companies is generally large; The capital scale of private companies is relatively small;
5. Management mode: private companies can adopt modern enterprise system, with governance structures such as board of directors and board of supervisors; The management of private companies is more personal, and decisions are usually made directly by the owners.
To sum up, private enterprises refer to profit-making organizations invested or controlled by natural persons. They rely on wage labor, and their property rights belong entirely to individuals, which can be in the form of independence, partnership, limited liability or joint stock limited company. Private enterprise is a broader concept, covering all non-state-owned and non-foreign-funded enterprises, including private enterprises.
Legal basis:
Company Law of the People's Republic of China
Article 6
To establish a company, it shall apply to the company registration authority for registration of establishment according to law. Those that meet the conditions for establishment as stipulated in this Law shall be registered as limited liability companies or joint stock limited companies respectively by the company registration authority; Those who do not meet the conditions for establishment as stipulated in this Law shall not be registered as a limited liability company or a joint stock limited company.
Where laws and administrative regulations stipulate that the establishment of a company must be approved, the approval procedures shall be handled according to law before the company is registered.
The public may apply to the company registration authority to inquire about the registered items of the company, and the company registration authority shall provide inquiry services.
People's Republic of China (PRC) partnership enterprise law
second
The term "partnership enterprise" as mentioned in this Law refers to the general partnership enterprise and limited partnership enterprise established in China by natural persons, legal persons and other organizations in accordance with this Law.
A general partnership consists of general partners, who are jointly and severally liable for the debts of the partnership. Where this Law has special provisions on the liability form of general partners, such provisions shall prevail.
Limited partnership consists of general partner and limited partner. The general partner shall be jointly and severally liable for the debts of the partnership, and the limited partner shall be liable for the debts of the partnership to the extent of the capital contribution subscribed.
Regulations of People's Republic of China (PRC) on Individual Industrial and Commercial Households
second
Citizens with operational ability refer to individual industrial and commercial households registered by the administrative department for industry and commerce in accordance with the provisions of these regulations. Individual industrial and commercial households can operate independently or at home. The legitimate rights and interests of individual industrial and commercial households are protected by law, and no unit or individual may infringe upon them.