Is it legal to buy and sell companies?

In law, companies are generally called legal persons. Legal person, like natural person, is one of the most common civil subjects in life. It has the characteristics that natural people have no humanity and resources. The change of legal person structure is also changed through the operation of natural persons. So is it legal to buy and sell companies? Next, let's take a look. 1. Is it legal to buy and sell companies?

As long as the company's registration process is legal and its operation is legal, it is a legal company.

Second, how much tax should I pay for the share transfer?

Both parties to the equity transfer shall pay stamp duty at the rate of five ten thousandths. For the income from equity transfer, the shareholders are natural persons and pay personal income tax at the rate of 20%. Corporate shareholders should pay enterprise income tax at the rate of 25%.

The calculation formula of personal income tax on equity transfer is: personal income tax payable = (equity transfer income-principal (original value)-reasonable expenses) ×20%. Calculation of Personal Income Tax on Equity Transfer Paragraph 5 of Article 6 of the Individual Income Tax Law stipulates that the calculation method of personal income tax on property transfer is the taxable income after deducting the original value of property and reasonable expenses from the income from property transfer. Article 22 of the implementation regulations stipulates that the income from property transfer shall be taxed according to the balance of the income from property transfer after deducting the original value of the property and reasonable expenses; Article 19 The original value of the property mentioned in Item 5, Paragraph 1, Article 6 of the Tax Law refers to the purchase price and related expenses paid in accordance with regulations. So, what is a reasonable fee? There is no clear provision in the law, which generally refers to the necessary expenses for handling the formalities of equity transfer. Paragraph 5 of Article 3 of the Individual Income Tax Law stipulates that the income from royalties, interest, dividends, bonuses, property leasing, property transfer, accidental income and other income shall be subject to the proportional tax rate of 20%.

3. Does the change of company legal person affect the labor contract?

Article 33 of the Labor Contract Law stipulates: "The change of the name, legal representative, principal responsible person or investor of the employing unit shall not affect the performance of the labor contract." In real life, when an employer signs a labor contract with a laborer, it is often signed by its legal representative or person in charge. However, the legal representative of the enterprise signs the labor contract with the employee on behalf of the employer, not the individual. Therefore, as long as the legal person qualification of the employer remains unchanged, no matter how the legal representative changes, the rights and obligations of the employer will not be affected.

Although the legal representative of the enterprise where the employee works has changed, the obligations that the enterprise should perform have not changed. Therefore, the labor contract signed by the employee and the original legal representative of the enterprise is still valid and should continue to be performed, otherwise it is a breach of contract and should bear the corresponding liability for breach of contract. In order to solve this problem, the Notice on Several Issues Concerning the Implementation of the Labor Contract System issued by the former Ministry of Labor 1996 clearly pointed out that the change of the legal representative of the enterprise will not affect the performance of the labor contract, and the employer and the employee do not need to re-sign the labor contract.

Of course, due to the change of the legal representative of the enterprise, the production, operation and management of the enterprise may be adjusted accordingly, and the use of personnel will be rearranged. In this case, the enterprise shall, in accordance with the principle of equality, voluntariness and unanimity in concluding and changing the labor contract in the Labor Contract Law, negotiate with the workers to change the labor contract. If no agreement can be reached, the labor contract may be terminated, but the laborer shall be given corresponding economic compensation according to law.

The above is the legal content of buying and selling companies. From the above, we can know that as long as the company registration process is legal and its operation is legal, it is a legal company. If in doubt, you can consult a professional lawyer in official website. I believe it will help you.