Among them, surplus reserve fund is a accumulated surplus with a specific purpose, and undistributed profit is a accumulated surplus without a specific purpose.
The specific differences between company existence and employment are as follows:
1. Different operating states: Being in operating state means that the enterprise is in normal operating state, and surviving means that although the enterprise entity exists, it is no longer in operating state. Surviving enterprises are unlisted enterprises that exist in the form of group companies or parent companies after restructuring;
2. Different production status: In-service means that the enterprise still has normal production and business activities, but it is in a state of existence, and the enterprise generally no longer produces. In other words, one is production and the other is not production;
3. The existence of operating profit is different. Enterprises in the industry state generally have operating profits, but are not in a state of survival.
The conditions for registering a company are as follows:
1. A registered company must have at least two people. Limited liability companies can be divided into one-person limited liability companies and two-person limited liability companies. A limited liability company may not have a board of directors and a board of supervisors, but only three positions: executive director, general manager and supervisor.
2. Where it is necessary to set up a board of directors and a board of supervisors, the number of members of the board of directors shall not be less than three, and the number of members of the board of supervisors shall not be less than three.
To sum up, the company exists in accordance with the law and continues to operate normally, that is, the so-called opening, normal and registration. The survival of a company is generally not affected by changes in shareholders. Because the company and shareholders are separated, the death, withdrawal and bankruptcy of shareholders do not affect the survival of the company in principle, and the company can exist independently. Therefore, the company is considered to be sustainable forever.
Legal basis:
Article 168 of the Civil Code of People's Republic of China (PRC)
The company's provident fund is used to make up the company's losses, expand the company's production and operation or increase the company's capital. However, the capital reserve fund shall not be used to make up the company's losses. When the statutory reserve fund is converted into capital, the retained reserve fund shall not be less than 25% of the registered capital of the company before the transfer.