1. Doesn't sole proprietorship mean sole proprietorship by natural persons?
Sole proprietorship does not mean sole proprietorship by natural persons. Sole proprietorship is an unincorporated organization without legal person qualification, and sole proprietorship by natural persons is a classification of legal persons in a one-person limited liability company. A one-person limited liability company invested by a natural person alone is an individual who can bear civil liability alone. A one-person limited liability company is wholly owned and invested by a legal person. A legal person is an organization that can independently bear civil liability, such as a company, a school, a legal person group, etc. A legal person refers to an enterprise with a specific legal person qualification. A company wholly invested by a legal person enterprise is called a wholly-owned company, that is, there are no other shareholders. A natural person refers to a citizen or a non-citizen, that is, an individual, who invests in a company and has no other shareholders. According to the law, only one sole proprietorship company can be established, that is, a natural person can only invest in one sole proprietorship enterprise and cannot invest in two sole proprietorship enterprises at the same time.
Individual proprietorship is an organizational form of enterprises. A sole proprietorship enterprise, referred to as a sole proprietorship enterprise for short, refers to a profit-making economic organization invested by a natural person and all its assets are owned by the investor. Sole proprietorship is a very old enterprise form, which is still widely used in commercial operation. Its typical characteristics are personal investment and personal operation. Individuals are responsible for their own profits and losses, at their own risk. A sole proprietorship enterprise does not have legal person status. Although you can have a brand name and engage in civil activities in the name of an enterprise, it is only a special form of natural person business activities and belongs to the category of natural person enterprises.
Second, the difference between a sole proprietorship enterprise with legal person and a sole proprietorship enterprise with natural person
1. Different investors: a wholly natural person-owned enterprise can only be established by a natural person, and a wholly legal person-owned enterprise is a company established by an enterprise with legal person status as the sole contributing shareholder;
2. Different responsibilities: In natural person enterprises, unincorporated natural person enterprises cannot bear civil liabilities independently. Operators must bear unlimited joint and several liability. Sole legal person ownership refers to a profit-making company established by shareholders according to law, and the company can generally bear civil liability independently;
3. Applicable law: The sole proprietorship enterprises established by natural persons in accordance with the Law on Sole proprietorship enterprises, the individual industrial and commercial households established in accordance with the provisions of the Civil Code and the Provisional Regulations on the Administration of Urban and Rural Individual Industrial and Commercial Households, and the sole proprietorship enterprises established in accordance with the Company Law are subject to their adjustment.
Third, the type of enterprise.
The specific requirements of the law for different types of enterprises, such as establishment conditions, establishment procedures, internal organization, etc. Regarding the types of enterprises, China's Company Law, Joint Venture Law, Sino-foreign Joint Venture Law, Sino-foreign Joint Venture Law, Foreign-funded Enterprise Law, Sole proprietorship Enterprise Law and other relevant laws and regulations have relevant provisions.
There are generally two standards to determine the type of enterprise, namely academic standards and statutory standards. Academic standard is the theoretical explanation and classification of enterprise types by scholars who study enterprises and enterprise law according to the objective situation of enterprises and the legal standards of enterprises. This kind of classification is not legally binding and mandatory, but the theoretical explanation can guide and draw lessons from the formulation and implementation of enterprise laws. Statutory standards are the types of enterprises recognized and classified according to the provisions of the Enterprise Law. The legal type of an enterprise is legally binding and mandatory. However, due to different types of enterprises, the specific content and procedural requirements stipulated by the law for different types of enterprises are also very different.
The basic forms of legal classification of enterprises mainly include sole proprietorship, partnership and company. The law basically summarizes the connotation of these three kinds of enterprise division, namely, the capital composition of enterprises, the form of responsibility of enterprises and the legal status of enterprises. Judging from China's legislative practice, it is basically to arrange enterprise legislation according to the form of ownership and divide enterprise types. With the gradual establishment of the socialist market economic system and the further deepening of enterprise reform, China will also regard sole proprietorship, partnership and company as the basic legal classification of Chinese enterprises. China has promulgated the Company Law, the People's Republic of China (PRC) Partnership Enterprise Law and the People's Republic of China (PRC) Wholly-owned Enterprise Law. The legal classification in China mainly includes sole proprietorship, partnership and company.
In addition, enterprises can be classified according to economic types in China. This is the basic practice of legal classification of enterprises in China. According to the Constitution and relevant laws, China has various economic types, such as state-owned economy, collective ownership economy, private economy, joint-stock economy, foreign-related economy (including foreign investment, Sino-foreign joint venture and investment economy from Hong Kong, Macao and Taiwan). Accordingly, the mode of enterprise legislation in China is also arranged according to the economic type, thus forming a special situation of determining the legal type of enterprises according to the economic type. They are: state-owned enterprises; Collective ownership; Private enterprises; Joint-stock enterprises; Limited partnership; Joint venture; Foreign-invested enterprises; Sole proprietorship enterprise; Hong Kong, Macao and Taiwan; Joint stock cooperative enterprise. Sole proprietorship does not mean sole proprietorship by natural persons. Sole proprietorship is an unincorporated organization without legal person qualification, and sole proprietorship by natural persons is a classification of legal persons in a one-person limited liability company.
Legal objectivity:
Article 18 of the Law of People's Republic of China (PRC) Municipality on Sole proprietorship Enterprises, if an investor of a sole proprietorship enterprise explicitly uses the property owned by his family as his personal contribution when applying for the registration of enterprise establishment, he shall bear unlimited liability for the debts of the enterprise with the property owned by his family according to law. Article 19 of the Law of People's Republic of China (PRC) Municipality on Wholly-owned Enterprises, investors of a wholly-owned enterprise may manage the affairs of the enterprise by themselves, or entrust or hire other persons with civil capacity to take charge of the affairs of the enterprise. Where an investor entrusts or employs others to manage the affairs of a sole proprietorship enterprise, it shall sign a written contract with the trustee or employee, specifying the specific contents of the entrustment and the scope of the rights granted.