Enterprises can be divided into large enterprises, medium-sized enterprises, small enterprises and micro enterprises. Classification is mainly based on the number of enterprises and operating income. Take industry as an example: (1) Large enterprises refer to enterprises with more than 1000 employees or operating income exceeding 400 million yuan. (2) Medium-sized enterprises refer to enterprises with more than 300 employees or operating income of more than 20 million yuan. (3) Small enterprises refer to enterprises with 20 or more employees and an operating income of 3 million yuan or more. (4) Micro-enterprises refer to enterprises with less than 20 employees or operating income of less than 3 million.
Enterprises refer to resident enterprises and non-resident enterprises as stipulated in the Enterprise Income Tax Law and its implementing regulations.
A resident enterprise refers to an enterprise established in China according to law, or an enterprise established in accordance with the laws of a foreign country (region) but with its actual management institution in China. A non-resident enterprise refers to an enterprise established in accordance with the laws of a foreign country (region), whose actual management organization is outside China, but has an organization or place in China, or has no organization or place in China, but has income from China.
In the category of commodity economy, enterprises, as one of various organizational units, are organic economic entities formed according to certain organizational rules. Generally for the purpose of profit, the mission is to maximize the interests of investors, customers, employees and the public, and to provide products or services in exchange for income. It is the product of social development, and develops with the development of social division of labor. Enterprises are the main body of market economic activities; Under the socialist economic system, the coexistence of various enterprises constitutes the micro-foundation of the socialist market economy. Enterprises have three basic organizational forms: sole proprietorship, partnership and company, and corporate enterprise is the most important and typical organizational form in modern enterprises.
Modern economic theory holds that enterprises are essentially "a mechanism of resource allocation", which can realize the optimal allocation of the whole social and economic resources and reduce the "transaction cost" of the whole society.
Legal definition
According to Chinese laws, companies refer to limited liability companies and joint-stock limited liability companies, which have all the attributes of enterprises.
Therefore, all companies are enterprises, but all enterprises are not necessarily companies. A company is just an organizational form of an enterprise.
The definition of enterprise in Modern Chinese Dictionary is factories, mines, railways, companies and other departments engaged in economic activities such as production, transportation and trade.
Article 1 of People's Republic of China (PRC) Enterprise Income Tax Law passed on March 17, 2007 stipulates: "In People's Republic of China (PRC), enterprises and other income-earning organizations (hereinafter referred to as enterprises) are taxpayers of enterprise income tax and pay enterprise income tax in accordance with the provisions of this Law. This Law is not applicable to sole proprietorship enterprises and partnership enterprises. "
From the above explanations and laws, we can see that: first, an enterprise is a social organization (that is, a department, but the word "department" has a strong planned economy color and is somewhat outdated); Secondly, enterprises are engaged in economic activities, that is, they can provide services or products to the society; Finally, the purpose of an enterprise is to obtain income, that is, to obtain profits.
Modern Chinese Dictionary defines a company as an industrial and commercial organization engaged in product production, commodity circulation or some construction undertakings.
Article 2 of the Company Law of People's Republic of China (PRC), which was revised on June 27th, 2005, has this description: "The company mentioned in this Law refers to a limited liability company and a joint stock limited company established in China according to this Law."
It can be seen that when the word "company" is usually used, its meaning is relatively broad. In many cases, sole proprietorship enterprises and partnership enterprises are also called companies, but in legal provisions, companies only refer to limited liability companies and joint stock limited companies. According to the legal meaning of a company, the following definition may be more appropriate: a social organization engaged in production or service business that independently bears civil liability.
Business and enterprise
Enterprise units are generally self-financing productive units. The so-called "self-financing" means that you bear the consequences of losses and profits and have certain autonomy. Enterprise units are divided into state-owned enterprises and private enterprises. State-owned enterprises are state-owned enterprises. A private enterprise is a business unit owned by individuals.
Institutions are generally public welfare institutions established by the state, but they are not government agencies and are different from civil servants. Under normal circumstances, the state will give financial subsidies to these institutions. Divided into fully funded institutions, such as schools, institutions in balance allocation, such as hospitals, and other independent institutions that are not funded by the state.