1. Self-employed individuals have no requirement for registered capital when registering for industry and commerce.
2. Limited company registration requires registered capital.
Second, registration.
1, individual industrial and commercial households only have business licenses, which is simple and quick.
In addition to the business license, the limited company also needs the articles of association. This document varies from country to country, such as Hongkong, Singapore, island countries and Chinese mainland.
Third, the preferential tax policies are different.
1, individual industrial and commercial households do not need to enjoy preferential policies, and there is no investment risk and no bookkeeping. Limited companies need to make accounts and file tax returns every month and can enjoy preferential tax policies.
2. Individual industrial and commercial households are not allowed to apply for ticket increase at the tax rate of 16%, and only small-scale taxpayers (3%) are allowed. Limited company can apply for 16% general taxpayer VAT invoice.
Four, tax payment and tax calculation methods are different.
1, individual industrial and commercial households:
Generally, it is a fixed tax, and you need to pay a fixed tax regardless of your income. If you don't choose the fixed tax, you can pay the tax according to the actual account, and the tax payment is divided into three situations.
The amount is less than 90,000 RMB: no tax is required (referring to one quarter).
Amount: 95 million: 3% for small-scale taxpayers.
More than 5 million yuan: 17% is paid by general taxpayers, which is generally not recommended.
2. Taxes paid by a limited liability company:
The corporate income tax rate is 25%. ?
Small and low-profit enterprises that meet the requirements shall be subject to enterprise income tax at a reduced rate of 20%. ?
High-tech enterprises that need special support from the state shall be subject to enterprise income tax at a reduced rate of 15%.
Verb (abbreviation for verb) account title
Self-employed people have no legal representative, and they are self-employed. Opening an account is a personal account.
The bank account of a limited company belongs to the corporate account of the company, and the title belongs to the company name.
Individual industrial and commercial households and limited liability companies are very different! First of all, the definitions of the two are different.
1. Individual industrial and commercial households refer to citizens who are engaged in industrial and commercial operations within the scope permitted by law and approved and registered according to law, such as small shops selling braised dishes at the entrance of the community and small restaurants opened by couples. Under normal circumstances, the scale of operation of individual industrial and commercial households is small;
2. A limited liability company refers to an economic organization registered in accordance with the Regulations of the People's Republic of China on the Administration of Company Registration and established with the contribution of less than 50 shareholders. Each shareholder shall bear limited liability to the company with the amount of capital contribution subscribed by him, and the company shall be liable for the debts of the company with all its assets. For example: XXX limited liability company and so on. ;
Second, the names are different.
1, the names of individual industrial and commercial households are mostly XXX stores and XXX salesrooms. ;
2. The names of limited liability companies are mostly XXX limited liability companies;
Third, the business premises are different.
1, individual industrial and commercial households are not required to have fixed business premises, such as vendors. ;
2. When a limited liability company is registered, it must fill in the fixed business place, which can be owned or leased;
Fourth, the registered capital is different
1. Individual industrial and commercial households do not need clear registered capital. For example, street vendors selling braised dishes don't have to ask how much registered capital they have.
2. A limited liability company must have registered capital. It used to be a paid-in system, but now it is a subscription system, that is, shareholders unanimously agree to pay their respective capital contributions before XX.
Fifth, the degree of debt commitment is different.
1. The debts of individual industrial and commercial households, if operated by individuals, shall be borne by personal property; Family business, with family property. Because individual industrial and commercial households do not have the legal person qualification, they bear unlimited liability for debts. For example, the pot-stewed restaurant mentioned above eats people to death because of food problems, so the owner of the pot-stewed restaurant should bear unlimited liability. If it is a family business, then the family should bear unlimited liability;
2. A limited liability company has full legal personality, so the shareholders of the company shall bear limited liability for the debts of the company to the extent of their capital contribution. Take the pot-stewed food shop mentioned above as an example. If it is a limited company, the capital contribution subscribed by the shareholders of the company is 500,000 yuan. Even if the person dies, the shareholders will only bear the responsibility of 500,000 yuan, which will not affect the family property of the shareholders.
Tax difference of intransitive verbs
1, individual industrial and commercial households take the owner as the personal income tax payer. Therefore, individual industrial and commercial households do not pay corporate income tax, but only pay personal income tax. Article 3 of the Individual Income Tax Law of People's Republic of China (PRC) stipulates that the excess progressive tax rate of 5% to 35% is applicable to operating income; Article 6 stipulates that the total income in each tax year, after deducting costs, expenses and losses, is the taxable income.
Article 12 of the Individual Income Tax Law of People's Republic of China (PRC) stipulates that taxpayers shall pay individual income tax on an annual basis after obtaining business income, and submit a tax return to the tax authorities within 15 days after the end of each month or quarter to pay taxes in advance; Settle the income before March 3 1 of the following year;
2. A limited liability company pays enterprise income tax at the rate of 25%. Enterprise income tax is calculated according to the tax year. The tax year begins at 65438+ 10 1 and ends at 65438+February 3 1.
In addition, when the company pays dividends, if the investor is a natural person and the shareholders get dividends and bonuses, according to the Individual Income Tax Law of People's Republic of China (PRC), the shareholders should also pay personal income tax on dividends, with a proportional tax rate of 20%. If the investor is a legal person, the dividends and bonuses obtained belong to the income from equity investment between qualified resident enterprises and can be regarded as tax-free income;
Seven, different procedures
1. Because of its small scale, individual industrial and commercial households can't set up account books according to the standards stipulated in the Interim Measures for the Administration of Account Establishment of Individual Industrial and Commercial Households, so it is not necessary to set up account books. Of course, if the scale of individual industrial and commercial households is large, professional institutions or qualified accountants can be hired to establish accounts and handle accounts on their behalf.
2. Limited liability companies are relatively formal and should abide by the relevant provisions of the company law, and should prepare financial and accounting reports at the end of each fiscal year;
To sum up, individual industrial and commercial households and limited liability companies are still very different. Please choose carefully! 1, different places of business
Limited companies must have their own fixed business premises and employees, and there are no restrictions on individual industrial and commercial households. Individual industrial and commercial households engaged in passenger and cargo transportation, trafficking, setting up stalls and mobile services do not need fixed business premises.
2. Different investors.
The investment subject of a limited company is a legal person, and the license is the Business License of Enterprise Legal Person. An enterprise as a legal person can independently enjoy legal rights and undertake legal obligations in the name of the enterprise itself, and the legal rights and obligations directly belong to the enterprise rather than the enterprise investors.
The investment subject of individual industrial and commercial households can only be natural persons, and the license is the Business License of Individual Industrial and Commercial Households. As a natural person, he participates in economic activities. As the subject of civil legal relationship, he does not have the attribute of enterprise legal person and bears unlimited liability, so the Business License for Individual Industrial and Commercial Households has no registered capital.
3. Different property responsibilities.
As far as industrial and commercial management fees are concerned, it is better for self-employed individuals to bear unlimited liability for property and limited liability for limited companies, because the self-employed government has announced that it will stop collecting industrial and commercial management fees, and limited companies will also pay them, but the industrial and commercial management fees are several hundred yuan a year, which is not much.
The legal subject of a limited company is a company, and the legal subject of individual industrial and commercial households is an individual. The debt commitment of a limited company is limited liability, and debts exceeding the registered capital can apply for bankruptcy; Individual industrial and commercial households shall bear unlimited liability for their debts, and the debts must be paid off.
4. The tax and financial accounting requirements paid by the two companies are different.
Limited companies must have a sound financial management system, and individual industrial and commercial households have no financial system requirements. The tax difference is that self-employed individuals levy business tax (4% to 6% of monthly turnover), but the monthly turnover is less than 5,000 yuan, and profits are levied according to personal income tax. Limited companies have the same business tax, but different income taxes, and the tax rate is relatively high (24% to 33%).
5. The liquidation procedures are different.
When a limited company is dissolved, the investors shall liquidate themselves or the creditors shall apply to the people's court to appoint a liquidator for liquidation. However, there is no liquidation procedure when individual industrial and commercial households close down. They only need to go through the formalities of closing their business at the original registration authority and hand in their business licenses.
1, different names.
Individual industrial and commercial households can be named as a shop, a business department, a studio, etc. , but not a company; Limited liability companies are different. They can be called XXX company, XXX limited company or XXX limited liability company.
2. The legal status and risks of investors are different.
Individual industrial and commercial households do not have independent legal personality, capacity for civil rights and capacity for civil conduct, and cannot bear civil liability independently. Therefore, individual operators are jointly and severally liable for their debts.
The company has the qualification of an independent legal person and can bear civil liability independently. As an investor, he shall be liable for the company's debts with the amount of capital subscribed.
Example: Individual industrial and commercial households owe foreign countries100000 yuan in the course of operation, and these individual industrial and commercial households must bear joint and several liabilities until they are paid off. If it is a company with a registered capital of only 30,000 yuan, the upper limit of the investor's liability for the company's debts is 30,000 yuan. If the amount exceeds 70,000 yuan, the investor may not be liable. If the company is unable to repay, it may choose bankruptcy.
3. There are different requirements for tax types, tax declaration methods and accounting.
Both individual industrial and commercial households and limited companies are generally required to pay value-added tax, urban maintenance and construction tax, education surcharge and local education surcharge, and those whose monthly income is less than100000 yuan or their quarterly operating income is less than 300000 yuan can enjoy the preferential policy of exemption from value-added tax.
Individual industrial and commercial households need to pay personal income tax on their operating income; The company's operating income needs to pay enterprise income tax. If the company is profitable and distributes the profits to individual investors, it needs to pay 20% personal income tax according to the dividend interest dividend. This is the tax difference between them.
If individual industrial and commercial households do not have the conditions to establish account books, the tax can be levied according to the approved collection policy, and it is enough for the boss to know how much he earns. However, the company needs to set up accounting books, and the tax is levied by auditing. Under normal circumstances, the approved collection policy may not be implemented.
For example, it is more appropriate to open a small shop, shop early, or open a barber shop and register an individual industrial and commercial household; Oh, it is more appropriate to register a limited liability company if you open a large supermarket or develop real estate projects.
Hello, let me answer your question.
Your question is: What is the difference between individual industrial and commercial households and limited companies?
First of all, we should define the concepts of individual industrial and commercial households and limited companies.
1. Individual industrial and commercial households:
Article 2 of the Measures for the Administration of Registration of Individual Industrial and Commercial Households: "Citizens who have the ability to operate shall be registered by the market supervision and management department, obtain the business license of individual industrial and commercial households, and carry out business activities according to law." . The registered items include: (1) the name and domicile of the operator; (2) the form of composition; (3) Business scope; (4) business premises;
2. Limited company:
Limited company, referred to as limited liability company for short, is an enterprise legal person established under the conditions stipulated in the Company Law and relevant laws. Shareholders shall be liable to the Company to the extent of their capital contribution, and enjoy the benefits in proportion to their shares. The company is liable for its debts with all its assets.
Secondly, the difference between the two.
1, with different organizational forms. Limited company is an enterprise legal person, not a natural person. Individual industrial and commercial households are not legal persons, but natural persons.
2. Different responsibilities. Limited companies only bear limited liability within the scope of all their assets, and shareholders only bear limited liability within the scope of their capital contribution to the company, and debts exceeding some laws and regulations will not be supported. And individual industrial and commercial households should bear unlimited liability.
3, the establishment (establishment) conditions are different.
There is a threshold for a limited company to be established under the conditions stipulated in the Company Law and relevant laws. There are many documents that need to be submitted to the company registration authority, such as the resolutions of the company's board of directors, the articles of association, the list of all shareholders, the proportion of shareholders' investment, etc. The establishment conditions of individual industrial and commercial households are simple. As long as they are citizens of China and have the ability to operate, they can go to the market supervision department to obtain the business license of individual industrial and commercial households and conduct business activities.
4. Different legal requirements. Co., Ltd. implements the general manager responsibility system. The shareholders' meeting, board of directors and board of supervisors of the company need to be established according to law; There must be company official seal, financial seal, invoice seal, contract seal, legal representative seal and other seals; Need to deal with basic bank accounts, bookkeeping and tax returns, payment of social security, annual company reports, etc. These requirements are not needed by individual industrial and commercial households.
The above are personal opinions, for reference only!
、
There is a big difference between self-employed and limited companies. If you elaborate, it's a long story. I'll give you a brief summary here.
1. First of all, there are different organizational forms, one is individual industrial and commercial households and the other is limited companies. The small scale of individual industrial and commercial households and the large scale of limited companies will limit the amount of capital.
2, tax difference, self-employed individuals are generally tax authorities to estimate your sales according to their location, scale, number of employees, etc. And then give a tax, regardless of the income of the month, whether there is income or not, it must be paid according to the fixed tax amount, and the relevant tax amount cannot be deducted. Limited liability companies require enterprises to have sound accounting and accounts, and tax payment is also based on the income declared by enterprises themselves, which can be deducted from relevant taxes.
3. The conditions for establishment are different. Where a limited liability company needs registered capital, the shareholders shall pay the amount of capital contribution stipulated in the articles of association; There is no registered capital limit for the establishment of individual industrial and commercial households, only the investor needs to declare his capital contribution.
4. Different legal forms. A limited liability company is a legal civil subject with legal personality. It bears civil liability to the extent of the assets registered by the company, and has nothing to do with the individual shareholders of the company. However, individual industrial and commercial households do not have legal personality, so the head of household bears all civil liabilities.
5. The procedures are different. The business license registration of individual industrial and commercial households is relatively simple, and the mode of operation is relatively flexible, while the company registration is more troublesome, and it needs to provide a lot of things and comply with the relevant regulations of the company.
If it is a foreign contract, individual industrial and commercial households have no rights, while limited companies can. Furthermore, individual industrial and commercial households cannot go public for financing, while companies can. There are many different details, which will not be described here. I hope the answer will help you.
You are welcome to add your comments.
Generally, when registering an enterprise, there are several common situations, such as individual industrial and commercial households, sole proprietorship enterprises and limited liability companies.
There are some differences between these forms, especially the differences in investors' responsibilities and taxes, which will have a very significant impact on the subsequent business. So be sure to think clearly when registering. In addition, other differences need to be considered. Let's talk separately.
1. Different responsibilities.
Investors of individual industrial and commercial households and sole proprietorship enterprises shall bear unlimited liability for debts, and shareholders of limited companies shall bear limited liability to the extent of their capital contribution. Of course there are exceptions. Where the property of the company is confused with the personal property of the shareholders, the shareholders shall be jointly and severally liable for the debts of the company.
2. Different taxes.
Value-added tax is divided according to sales, and income tax is related to the organizational form of enterprises. Pay attention to the following two points:
(1) Individual industrial and commercial households and sole proprietorship enterprises pay individual income tax, and limited liability companies pay enterprise income tax. Therefore, this year's preferential income tax for small and meager profit enterprises does not apply to individual industrial and commercial households and sole proprietorship enterprises.
(2) Whether there is income tax. At present, except for individual industrial and commercial households, the income tax of other enterprise types has been tightened.
3. Other differences.
(1) Investor: Individual industrial and commercial households can be funded by individuals or families, sole proprietorship enterprises are generally funded by natural persons, and limited companies can be funded by natural persons or legal persons.
(2) Legal form: Individual industrial and commercial households and sole proprietorship enterprises are not legal persons, and the General Principles of the Civil Law, the Provisional Regulations on the Administration of Urban and Rural Individual Industrial and Commercial Households and the Sole proprietorship Enterprise Law apply respectively. A limited company is a legal person and the company law applies.
(3) financial accounting: the requirement of financial accounting is generally limited company >; Sole proprietorship enterprises > individual industrial and commercial households. The financial reports of limited companies are generally audited.
(4) Future development: Individual industrial and commercial households operate flexibly, but it is not conducive to development and growth. If you need to build a more complex organizational structure in the future, then a limited company will be a better choice.
Several people contribute to start a business together, and everyone forms a company. Shareholders meet the legal requirements and it is definitely safer. You are the sole shareholder, so you can't register the company? Certainly not, otherwise there would be no sole proprietorship, so if this happens, the biggest problem is usually what is the difference between individual industrial and commercial households and sole proprietorship. There are still some differences between whether the investor has the legal person qualification and whether the investor bears limited liability or unlimited joint liability. Investors need to choose the most suitable enterprise form according to their actual situation.
Registered self-employed, in the industrial and commercial registration, there is no minimum requirement for registered capital. Fixed place is not a necessary condition for the establishment of self-employed households. A sole proprietorship enterprise must have a fixed place of production and business operation and a legal enterprise name.
At the time of registration, the minimum registered capital of a limited company is RMB 30,000, and the minimum registered capital of a one-person limited liability company is RMB 654.38+10,000. What is implemented now is subscription, and there is no need to deposit money in the bank. There is little difference at the time of registration, so the loss-making self-employed individuals should be responsible for all debts and repay them with all their property. A limited company may apply to the court for bankruptcy protection. For example, the registered capital is 300,000 yuan, and now it is 6,543.8+0,000 yuan, and only 300,000 yuan needs to be paid back, which is legal.
Industrial and commercial registration "one photo and one yard". Whether you are a self-employed person or a company, you should file your tax returns and pay taxes normally. No one can escape, because industrial and commercial registration and tax registration are tied together. As long as you register, the tax authorities can follow you.
name of the company
Individual industrial and commercial households can operate under a brand name, but a sole proprietorship enterprise must choose an industry brand name when naming. Both can be named after a work "workshop" and "studio", or a center, an institute and so on.
Establishment subject
Investors and operators of individual industrial and commercial households must be natural persons who invest in the establishment of individual industrial and commercial households, and investors and operators of sole proprietorship enterprises may be different persons. Investors of a sole proprietorship enterprise may entrust or hire others to manage the affairs of the sole proprietorship enterprise, and the ownership and management rights may be separated. Self-employed investors are not allowed to transfer. However, the investor of a sole proprietorship enterprise may transfer the property and collect personal income tax according to the income from the transfer of the property.
Tax declaration and preferential policies What taxes do self-employed individuals and sole proprietorship enterprises have to pay? Individual industrial and commercial households and sole proprietorship enterprises pay individual tax and value-added tax, do not have legal person status and do not pay enterprise income tax. Personal income tax is calculated and levied according to the five-level excess progressive tax rate of 5%~35%.
The tax usually paid by individual industrial and commercial households is: 1. Value-added tax: Small-scale taxpayers whose monthly sales do not exceed 1 0.5 million yuan (if 1 quarter is1tax period, the quarterly sales do not exceed 450,000 yuan) are exempt from value-added tax. Note: not paying taxes does not mean not having to declare. Companies have to pay enterprise income tax, and self-employed individuals have to pay personal income tax, which is called personal income from production and operation. Withholding and paying employees' personal income tax, self-employed individuals also need manpower. Like companies, they should also help employees withhold and pay personal income tax.
2. Taxes and fees: urban maintenance and construction tax, education surcharge and local education surcharge can enjoy the latest preferential policy of up to 50% reduction. Value-added tax and additional tax are exempted below 300,000 yuan (except the special VAT ticket issued by the tax bureau).
3. Individual income tax: Article 4 of the Measures for the Payment of Individual Income Tax for Individual Industrial and Commercial Households (Order No.35 of People's Republic of China (PRC) State Taxation Administration of The People's Republic of China) stipulates: "Individual industrial and commercial households take the owner as the taxpayer of individual income tax." Therefore, individual industrial and commercial households do not pay corporate income tax, but only pay personal income tax.
Tax collection method
In terms of tax policy, both of them can be identified as general taxpayers or small-scale taxpayers, and both of them can apply the method of audit collection or approved collection. The annual turnover of more than 5 million yuan must be audited and collected. Different industries have different taxable income rates, such as industry, transportation and commerce 5%, construction and real estate 7%, catering service 7%, entertainment 20%, and other industries 10%. The specific approved tax rate of individual industrial and commercial households is 0.6%, the approved profit rate of sole proprietorship enterprises is 10%, and the goods sold are 5%.
In principle, individual industrial and commercial households and companies need to set up account books. Generally, within 15 days after the company receives the business license, it is necessary to set up account books to keep accounts and file tax returns according to the regulations. There is a relatively small-scale self-employed, who really can't meet the standard of establishing accounts, and needs to be approved by the tax authorities to establish a paste book of income and expenditure vouchers and a purchase and sale register.
otherwise
Everyone has to make an annual business report, and the company needs to submit the annual business report before June 30 every year. Individual industrial and commercial households shall submit an annual report to the registration authority from June 30th to June 30th every year. Self-employed people, like companies, have to buy social security for their employees. Both companies and individuals can apply for trademarks. When applying for self-employed, the name on the applicant's ID card and business license should be the same person.
What is the difference between individual industrial and commercial households and companies? Many people who have just started a business have such a question that they don't know where their entrepreneurial direction is. So today I will give you a detailed explanation from the following aspects.
According to different individual industrial and commercial households, it is established in accordance with the provisions of the Regulations on Individual Industrial and Commercial Households. Any individual citizen who has the ability to operate can be established according to law. The Company is a profit-making business organization established in accordance with the Company Law.
The difference of establishment is mainly reflected in the time of industrial and commercial registration. Compared with individual industrial and commercial households, the process of company registration and the required information are more. Moreover, the registration of individual industrial and commercial households does not require registered capital, and an address can be registered by an operator. But the company needs at least 30,000 registered capital.
Individual industrial and commercial households with different risks are operated by operators alone and are responsible for their own profits and losses, which is called unlimited responsibility system. The company undertakes limited liability. What do you mean? For example, the company owes 800,000 yuan due to poor management, and the registered capital of the company is 200,000 yuan. After the company declares bankruptcy, it doesn't need to repay 800,000 yuan, only 200,000 yuan.
The management mode and direction of individual industrial and commercial households with different management modes depend entirely on the operators and are relatively flexible. The company needs a legal person or shareholders' resolution before it can formulate its development direction. Business needs more processes. The main difference is that companies can become subsidiaries and other branches. Individual operators are not allowed to set up branches. If they want to open a second store, they have to apply for a new business license, and they can only apply for one in the same industry.
Individual industrial and commercial households with different invoices can only issue 5%, 3%, 1.5% and tax-free ordinary invoices. The company can also apply for special VAT invoices such as 13%, 9% and 6%.
Individual industrial and commercial households with different declaration methods can be approved and levied by the competent tax authorities without a promissory note. Most companies need to collect money by themselves, and need bills such as input invoices, cost invoices and expenses to offset taxes or deduct them before tax.
Individual industrial and commercial households with different preferential policies now only enjoy exemption from value-added tax for quarterly sales of less than 300,000 yuan, and there is no provision for exemption from individual business income tax. Of course, according to the situation and laws of different regions, the collection situation varies from place to place. Some companies can enjoy various tax preferential policies, such as income tax relief for small and micro enterprises and income tax preferential policies for high-tech enterprises.
I hope my answer can help you. If you feel a little rewarding, you can pay attention to me. I will update some things about individual industrial and commercial households every day in the future. Hello:
Individual industrial and commercial households: individual industrial and commercial households refer to an economic form in which the means of production are privately owned, mainly individual labor, and the labor income is dominated by individual workers themselves.
Individual industrial and commercial households have three organizational forms: individual business, family business and individual partnership business.
Limited company: a limited liability company, also known as a limited company, refers to an enterprise legal person established by shareholders according to law, and the shareholders are liable to the company to the extent of their capital contribution, and the company is liable to the company's debts with all its assets.
In other words, several people each contribute some money, and everyone also bears the responsibility of not leaving the company. Relatively safe.
Some differences between self-employed and limited companies;
(1) Industrial and commercial registration
1, with different registered capital requirements.
Self-employed individuals have no minimum requirements for registered capital when registering for industry and commerce.
Limited company, the minimum registered capital is 30,000 yuan at the time of registration, and the minimum registered capital in a one-person limited liability company is 654.38+10,000 yuan. What is being implemented now is subscription, that is to say, the figures filled in do not immediately deposit such money in the bank.
So there is actually not much difference when registering. What if the business loses money?
Self-employed people should be responsible for all debts, how much they lose and how much they owe, and use all their property, such as houses and cars, to pay off debts.
A limited company may apply to the court for bankruptcy protection. For example, the registered capital is 300,000 yuan, and now it is 6,543.8+0,000 yuan, and only 300,000 yuan needs to be paid back, which is legal.
2. Business registration
Self-employed households register "two certificates in one" and limited companies register "five certificates in one", all of which are "one photo and one yard". In this way, both self-employed individuals and companies should file and pay taxes normally, and no one can escape, because industrial and commercial registration and tax registration are tied together. As long as you register, the tax authorities can find you.
(2) Tax declaration and preferential policies
What taxes do self-employed individuals and companies have to pay? Both parties shall pay:
(1) Value-added tax. As long as there are sales or services, value-added tax is indispensable.
(2) Income tax: companies have to pay enterprise income tax, and self-employed individuals have to pay personal income tax, which is called personal income from production and operation.
③ Withholding and paying personal income tax of employees. Self-employed also need manpower. Like companies, they should also help employees withhold and pay personal income tax.
What about tax incentives?
Self-employed individuals do not enjoy preferential policies, and the risk of real estate investment is not great. Limited companies can enjoy many preferential tax policies, and they need to make accounts and file tax returns every month.
Individual industrial and commercial households are not allowed to apply for increasing the tax rate of 17%, and only small-scale taxpayers (3%) are allowed. Limited company can apply for 17% VAT invoice of general taxpayer.
(3) Establish account books
Generally, within 15 days after the company receives the business license, it is necessary to set up account books, keep accounts and file tax returns in accordance with the regulations.
Self-employed people, like companies, also need to set up account books. There is a relatively small-scale self-employed, who really can't meet the standard of establishing accounts, and needs to be approved by the tax authorities to establish a paste book of income and expenditure vouchers and a purchase and sale register.
Companies and self-employed individuals can hire professional accounting institutions to establish accounts and handle accounting affairs on their behalf.
(4) Annual report on industry and commerce
The company needs to submit the annual operating report before June 30th every year.
Individual industrial and commercial households shall submit an annual report to the registration authority from June 30th to June 30th every year.
(e) Social security issues
There is no doubt that the company will buy social security for its employees.
If a self-employed person hires employees, it is actually equivalent to an "employer". Companies, for example, want to buy social security for their employees, but there are no compulsory measures at present.
If you don't hire employees, it's ok to buy social security for yourself.
(6) applying for a trademark
Both companies and individuals can apply for trademarks.
When applying for self-employed, the name on the applicant's ID card and business license should be the same person.