Sole proprietorship enterprises and individual industrial and commercial households are all funded by natural persons, which is their similarity. The difference between the two is that:
1. A sole proprietorship enterprise can only be established with individual contribution; Individual industrial and commercial households can be established by natural persons or by family investment.
2. For a sole proprietorship enterprise, the investor shall bear unlimited liability for the debts of the enterprise with his personal property; Only when the enterprise is established and registered, it is clear that family property is used as personal contribution, so that family property can bear unlimited liability for enterprise debts according to law. According to Article 29 of the General Principles of the Civil Law, the debts of individual industrial and commercial households shall be borne by personal property for individual businesses and family property for family businesses.
3. According to different laws. A sole proprietorship enterprise shall be established in accordance with the Law on Sole proprietorship Enterprises, and individual industrial and commercial households shall be established in accordance with the General Principles of the Civil Law, the Provisional Regulations on the Administration of Urban Individual Industrial and Commercial Households and their detailed rules for implementation.
4. A sole proprietorship enterprise is a business entity and a form of enterprise organization. It is an unincorporated organization in nature and has the organizational attributes of group personality. Individual industrial and commercial households do not take the form of enterprises. Not having the attributes of an organization. Before the promulgation of the law on sole proprietorship enterprises, China used to distinguish sole proprietorship enterprises from individual industrial and commercial households by the number of employees. More than 8 people are wholly-owned enterprises, and less than 8 people are individual industrial and commercial households. Obviously, this standard is not scientific, and it is no longer adopted after the promulgation of the Law on Sole proprietorship Enterprises, that is, a sole proprietorship enterprise can be established with less than eight employees, and the key depends on whether the sole proprietorship enterprise has been registered and obtained a business license.
(B) the difference between a sole proprietorship enterprise and a one-man company
One-man company refers to a limited liability company with only one shareholder, that is, the investor of the company is one person, and the investor is fully responsible for the debts of the company. China's newly revised company law stipulates a one-person limited liability company, and both natural persons and legal persons can contribute to set up a one-person limited liability company. In addition to one-man companies funded by natural persons and legal persons, wholly state-owned companies in China's company law also belong to one-man limited liability companies, but their shareholder status is special. A sole proprietorship enterprise and a one-man company are both enterprises funded by one entity, but their nature is completely different, which is reflected in:
1. Different investors. A sole proprietorship enterprise can only be established by natural persons, and a one-person company can be established by natural persons, legal persons or the state.
2. Different academic qualifications. A sole proprietorship enterprise belongs to an unincorporated organization and has no legal personality. One-man company, as a kind of company, is an enterprise legal person, and obtained legal person qualification when the company was established.
3. Different responsibilities. The investors of a sole proprietorship enterprise shall bear unlimited liability for the debts of the enterprise; Investors (shareholders) of a one-person company are liable to the company only to the extent of their capital contribution, that is, limited liability.
4. The registered capital requirements are different. For a sole proprietorship enterprise, the law first does not require the minimum registered capital, while the law of a one-man company requires the minimum registered capital. According to the Company Law, the minimum registered capital is 654.38 million yuan, which must be fully paid when the company is established.
5. The legal basis for its establishment is different. A sole proprietorship enterprise shall be established in accordance with the sole proprietorship enterprise law; A one-person company must be established in accordance with the company law. The main difference is actually the different application of the law. The sole proprietorship enterprise uses the sole proprietorship enterprise law, and the regulations can be found online.