Non-profit is the basic feature that distinguishes private non-enterprise units from enterprises. Profit and non-profit should be mainly distinguished from two points:
First look at its purpose and use. All enterprises, including service-oriented enterprises, aim at maximizing profits through their own business activities, and profit is the starting point of all enterprises.
Private non-enterprise units, on the other hand, aim at providing public welfare services to the society and promoting social progress and development through their own service activities, and their purpose is not profit. Social welfare is the biggest feature of private non-enterprise units. It is precisely because of this that the state will implement some special tax relief policies for private non-enterprise units.
Second, it is different from financial management and property distribution system. The profits of enterprises can be distributed among members, and the property after liquidation can be distributed among members, while the surplus of private non-enterprise units and the surplus property after liquidation can only be used for social welfare undertakings, but not among members.
Extended data
Enterprises, institutions, social organizations, other social forces and individual citizens may apply for the establishment of private non-enterprise units.
Specific conditions include:
1, approved by the competent business unit;
2. Having a standardized name and necessary organization;
3. Having employees who are suitable for their business activities;
4. It has legal property suitable for its business activities (generally registered with the Ministry of Civil Affairs is more than 300,000 yuan, of which the share of non-state-owned assets shall not be less than two-thirds of the total property, and the state laws or relevant state administrative departments have other provisions on the start-up capital of private non-enterprise units engaged in a certain line (industry).
5. Where necessary. Private non-enterprise units of medical treatment, education and vocational training receive the practice license of medical institutions in the administrative department of health, the license of running schools by social forces in the administrative department of education, and the license of running schools by social forces in the administrative department of labor and social security, and then register with the civil affairs department at the same level.
Reference source Baidu Encyclopedia-Private non-enterprise units
Source of reference: China government network-guide to applying for the establishment of private non-enterprise units