The most common legal forms of micro-enterprises are: individual industrial and commercial households, sole proprietorship enterprises, partnerships and limited liability companies.
Enterprises with different legal forms have different requirements, which will have many influences on enterprises, including:
1, the cost of starting a business and registering;
2. The difficulty of starting business procedures;
3. The risk responsibility of the owner;
4. The difficulty of seeking loans;
5. The possibility of finding a partner;
6. Decision-making procedures of enterprises;
7. Profit income of the company.
Financing methods and characteristics of small and micro enterprises;
1, the first is the IMF, which means fake stocks and secret loans. As the name implies, the so-called fake stock secret loan means that investors invest in projects in the form of shares, but actually do not participate in project management. Withdraw from the project at a certain time. This method is mostly adopted by foreign funds. The disadvantage is that the operation cycle is long, and it is necessary to change the shareholder structure and even the nature of the company. There are many foreign funds, so if you invest in this way, the nature of domestic companies will be changed to Sino-foreign joint ventures;
2. The second financing method is bank acceptance bill. The investor will transfer a certain amount, such as 1 billion yuan, to the company account of the project party, and then immediately ask the bank to open a bank acceptance bill of 1 billion yuan. Investors take away bank acceptance bills. This financing method is of great benefit to investors, because it actually turns 1 100 million yuan into several uses. He can take this 100 million yuan bank acceptance bill to other banks and post another 100 million yuan. At least 20% off. But the question is, can the bank draw an acceptance bill of 1 100 million yuan with the 1 100 million yuan in the company account? Probably only 80% to 90% banks will accept it. Even if 100% is accepted by the bank, it is still a question how much money the bank allows you to use in the company account. It depends on the level of the company and its relationship with the bank. In addition, the biggest drawback of acceptance is that according to national regulations, bank acceptance can only be opened for 12 months at most. Most places can only be opened for half a year. That is, the fee must be renewed every 6 months or 1 year. Spending money for a long time is very troublesome;
3. The third financing method is direct deposit. This is the most difficult financing method. Because direct deposit is against bank regulations, the relationship between enterprises and banks must be particularly good. The investor shall open an account in the bank designated by the project party and deposit the specified amount into his own account. Then sign an agreement with the bank. Promise not to misappropriate the money within the specified time. According to this amount, the bank gives the project party a loan less than or equal to the same amount. Note: We promise not to pledge the bank here. I don't agree to mortgage the money. It is another financing method called large pledged deposit that agrees to pledge. Of course, that kind of financing also has its own violations of bank regulations. That is, the bank needs to sign a letter of commitment to ensure that the payment is completed 30 days before the maturity. In fact, after he gets this thing, he can take it to a foreign bank to refinance;
4. The fifth financing method (the fourth is large pledged deposit) is bank letter of credit. The state has a policy that a bank letter of credit issued by a global commercial bank (such as Citigroup) that agrees to finance an enterprise is regarded as having the same amount of deposit in the enterprise account. In the past, many enterprises used this kind of bank letter of credit to circle money. Therefore, the national policy has changed slightly, and it is difficult for domestic enterprises to raise funds in this way. Only wholly foreign-owned enterprises and Sino-foreign joint ventures are allowed. Therefore, if domestic enterprises want to finance in this way, they must first change the nature of the enterprise;
5. The sixth financing method is entrusted loan. The so-called entrusted loan means that the investor sets up a special fund account for the project party in the bank, then transfers the money into the special fund account and entrusts the bank to lend money to the project party. This is a relatively easy way of financing. Usually, the audit of the project is not very strict, and the bank is required to make a commitment to collect interest and repay the principal from the project party every year. Of course, those who do not repay the principal only need to promise to collect interest every year;
6. The seventh financing method is direct payment. Direct payment means direct investment. Such strictly examined projects often require fixed assets mortgage or bank guarantee. Interest is also relatively high. Mostly short-term. The minimum personal contact is 18 annual interest. Generally above 20;
7. The eighth financing method is hedge fund. There is a kind of entrusted loan in the market that does not repay the principal and interest, and it is a typical hedge fund;
8. The ninth financing method is loan guarantee. More investment guarantee companies in the market can obtain much-needed funds by paying higher interest than banks.
To sum up, the legal form of an enterprise is the enterprise form stipulated by law. To start an enterprise, you can only choose the enterprise organization form stipulated by law, and you can't shape any enterprise form at will. However, the legal form of enterprises is not static, and it has changed in different periods.
Legal basis:
Article 11 of the Constitution of People's Republic of China (PRC)
Non-public economy such as individual economy and private economy is an important part of socialist market economy.
The state protects the legitimate rights and interests of individual economy, private economy and other non-public economy. The state encourages, supports and guides the development of the non-public economy, and supervises and manages the non-public economy according to law.