An enterprise is a profit-making economic organization engaged in economic activities such as production, circulation and service, which meets social needs with production or service, operates independently, accounts independently and is established according to law. Enterprises mainly refer to independent for-profit organizations, which can be further divided into corporate enterprises and unincorporated enterprises, such as partnerships, sole proprietorships and individual industrial and commercial households. Under the background of Chinese mainland's reform, opening-up and modernization in the late 20th century, and the influx of new concepts in the field of information technology, the usage of the word "enterprise" has changed, and it is not limited to commercial or profit-making organizations. With the development of society, the enterprise with real development potential must be the company.
Institutions generally refer to social organizations whose direct purpose is to improve social welfare, meet the needs of social culture, education, science and health and provide various social services. Institutions do not take profit as the direct purpose, and their work achievements and values are not directly expressed or mainly expressed in measurable material or monetary forms. Institutions are the first institutions relative to enterprises, including some units with civil servants, and are branches of state institutions.
First of all, the main differences among institutions, enterprises and companies are as follows:
First, the main qualifications and sources of funds for establishment are different.
Legally speaking, institutions belong to institutions, and enterprises (including companies) belong to enterprise legal persons. It is precisely because of this nature that the establishment funds of public institutions are mainly allocated by the state or raised by state-owned enterprises and institutions. The funds for establishing enterprises (including companies) are invested by investors.
Second, the establishment of the main body and the purpose of the establishment are different.
Most public institutions are established by the state (including state organs and local governments), and some are established by state-owned enterprises, such as hospitals and schools of large state-owned enterprises. The state establishes public institutions for the needs of state management or social public interests, and the work and services of public institutions are not for profit. For example, schools, public non-profit hospitals (of course, this is not entirely the case).
Enterprises (including companies) are established by investors, and enterprises established by the state should also be investors. The purpose of starting a business is to make a profit through operation, so is the state-owned enterprise.
Third, the management subjects and management methods are different.
The management of public institutions is mainly the responsibility of government departments. Institutions often have their subordinate government departments. Government departments mainly rely on administrative regulations, rules, regulations, orders and policies to lead and manage public institutions. Such as the state's management of public schools. The state's management of enterprises is only macro-management, and the management of enterprises is mainly the responsibility of the management team established by the investors according to law, including the board of directors and the general manager. According to the different nature of enterprises, investors manage enterprises according to the Company Law, Enterprise Law and Sino-foreign Joint Venture Law. For the management of the company, investors should also abide by the provisions of the company's articles of association.
Four, enterprises (including companies) in the course of business, need to pay taxes to the state, and institutions do not need to pay taxes.
Secondly, there are differences between enterprises and companies:
The company belongs to the enterprise, but the enterprise is not necessarily a company. Because there are various types of enterprises, such as factories, partnerships, shops and so on. Company is just one type of enterprise.