What's the difference between sole proprietorship by natural person and sole proprietorship by legal person?

The difference between sole proprietorship by natural person and sole proprietorship by legal person is as follows:

1. Different investors: a wholly natural person-owned enterprise can only be established by a natural person, and a wholly legal person-owned enterprise is a company established by an enterprise with legal person status as the sole contributing shareholder;

2. Different responsibilities: In natural person enterprises, unincorporated natural person enterprises cannot bear civil liabilities independently. Operators must bear unlimited joint and several liability. Sole legal person ownership refers to a profit-making company established by shareholders according to law, and the company can generally bear civil liability independently;

3. Applicable law: wholly-owned enterprises established by natural persons in accordance with the Law on Wholly-Owned Enterprises, individual industrial and commercial households established in accordance with the provisions of the General Principles of the Civil Law and the Provisional Regulations on the Administration of Urban and Rural Individual Industrial and Commercial Households, and wholly-owned enterprises established by legal persons in accordance with the Company Law are subject to their adjustment.

Natural person sole proprietorship, also known as individual sole proprietorship, is an organizational form of an enterprise, and legal person sole proprietorship refers to a company established by an enterprise with legal person qualification as the sole contributing shareholder.

Extended data:

Enterprise classification:

1. Individual industrial and commercial households: Individual industrial and commercial households do not have legal person status. According to the relevant laws and regulations, citizens refer to individual industrial and commercial households that are approved and registered to engage in industrial and commercial operations within the scope permitted by law. Individual industrial and commercial households can enjoy civil subject qualification as natural persons and legal persons. But individual industrial and commercial households are not a business entity;

2. Solely-owned enterprises: Solely-owned enterprises are business entities established in China according to law and invested by natural persons. Their property belongs to investors, who bear unlimited liability for corporate debts with their personal property, and belong to the category of natural person enterprises;

3. One-person limited liability company: A one-person limited liability company refers to a limited liability company with only one natural person shareholder or one corporate shareholders. The Company Law of People's Republic of China (PRC), which came into effect on June 5438+ 10 this year, stipulates that a natural person shareholder or corporate shareholders may set up a "one-person limited liability company".

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