The difference between a natural person-owned enterprise and a one-person limited liability company
Different investors
1. The investor of a one-person limited liability company may be a natural person or a legal person.
2. The investor of a sole proprietorship enterprise can only be a natural person.
(2) Different legal forms.
1. One-person limited liability company is a legal civil subject with legal personality, and its name bears the words "limited liability company".
2. A sole proprietorship enterprise belongs to an unincorporated organization and has no legal personality, so its name cannot be called a company.
(3) Different conditions for establishment
1. The monetary contribution of a one-person limited liability company shall not be less than 30% of the registered capital of the limited liability company.
2. The sole proprietorship enterprise has not made mandatory provisions on the form of capital contribution.
(d) Different provisions on tax collection and payment
1. A one-person limited liability company is required to pay enterprise income tax according to the tax law.
2. A sole proprietorship enterprise does not need to pay enterprise income tax, but only needs to pay individual income tax.
Investors bear different responsibilities.
1. The shareholders of a one-person limited liability company shall bear "limited liability" to the extent of their subscribed capital contribution, and shall be jointly and severally liable for the company's debts only if the shareholders cannot prove that the company's property is independent of their own property.
2. The investors of a sole proprietorship enterprise shall bear unlimited liability for the debts of the enterprise with their personal property. When applying for the registration of enterprise establishment, investors clearly use their family property as their personal contribution, and bear unlimited liability for the debts of the enterprise with their family property.
(6) Different financial accounting.
1. A one-person limited liability company shall make financial and accounting reports at the end of each fiscal year, which shall be audited by an accounting firm.
2. A sole proprietorship enterprise only needs to set up accounting books according to law and conduct accounting, and does not need to be audited by an accounting firm.
What are the conditions for the establishment of a sole proprietorship enterprise?
1. The investor is a citizen of China. The owner of a sole proprietorship enterprise can only be a natural person, and legal persons and other organizations other than natural persons cannot invest in the establishment of a sole proprietorship enterprise. An investor applying for the establishment of a sole proprietorship enterprise shall have corresponding capacity for civil rights and capacity for civil conduct;
2. It has a legal enterprise name. The name of the enterprise shall truly reflect the organizational characteristics of the enterprise and meet the requirements of laws and regulations;
3. The amount of investment declared by investors. The amount of investment declared by investors shall be commensurate with the scale of production and operation of the enterprise;
4. Have a fixed place and necessary production and operation conditions. The place of production and business operation includes the residence of the enterprise and the place suitable for production and business operation. The domicile is the location of the main office of the enterprise and the legal address of the enterprise;
5. Necessary staff. In other words, there must be employees who are suitable for the scope and scale of their production and operation. The number of employees is not stipulated by law, but depends on the situation of the enterprise.
I hope the above content can help you. Please consult a professional lawyer if you have any other questions.
Legal basis: Article 3 of the Company Law of People's Republic of China (PRC).
Company definition and shareholder liability 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.