Chapter 1 General Provisions Article 1 These regulations are formulated to encourage and guide the healthy development of private enterprises, protect the legitimate rights and interests of private enterprises, strengthen supervision and management, and prosper the socialist planned commodity economy. Article 2 The term “private enterprise” as mentioned in these Regulations refers to a for-profit economic organization whose enterprise assets are privately owned and which employ more than eight employees. Article 3: The private economy is a supplement to the socialist public ownership economy. The state protects the legitimate rights and interests of private enterprises.
Private enterprises must engage in business activities within the scope of national laws, regulations and policies. Article 4 Employees of private enterprises shall organize trade unions in accordance with the law. The legitimate rights and interests of employees are protected by national laws. Article 5 Private enterprises may establish private enterprise associations. Chapter 2 Types of Private Enterprises Article 6 Private enterprises are divided into the following three types:
(1) Sole proprietorship;
(2) Partnership enterprise;
(3) Limited liability company. Article 7 A sole proprietorship refers to an enterprise invested and operated by one person.
Sole proprietorship investors have unlimited liability for corporate debts. Article 8 A partnership enterprise refers to an enterprise in which two or more persons invest in accordance with an agreement, operate jointly, and are solely responsible for profits and losses.
A partnership must have a written agreement.
Partners have joint and unlimited liability for corporate debts. Article 9 A limited liability company refers to an enterprise in which investors are responsible for the company with the amount of their capital contribution, and the company is responsible for the company's debts with all its assets.
A limited liability company shall comply with the following provisions:
(1) The company name shall indicate the words limited liability company or limited liability company; Articles of association stipulated in the regulations;
(3) The number of investors is between two and less than thirty; (4) The registered capital must obtain legal capital verification certificate;
< p>(5) Investors must obtain the consent of other investors when transferring capital. If there are more than three investors, the consent of more than half of the investors must be obtained;(6) The registered capital shall not be reduced;
(7) No shares may be issued to the public.
If a limited liability company has more than 30 investors, it must make a special declaration to the industrial and commercial administration authorities, and registration can only be carried out after approval. Article 10 A limited liability company obtains legal person status in accordance with the law. Chapter 3 The Opening and Closing of Private Enterprises Article 11 The following persons may apply to open private enterprises:
(1) Rural villagers;
(2) Urban unemployed persons;
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(3) Individual industrial and commercial operators;
(4) Resigners and retirees;
(5) Retirement and retirement permitted by national laws, regulations and policies personnel and other personnel. Article 12 Private enterprises may engage in production and operation in industries such as industry, construction, transportation, commerce, catering, service, repair, and scientific and technological consulting within the scope of national laws, regulations, and policies.
Private enterprises are not allowed to engage in production and operation in the military and financial industries, and are not allowed to produce or operate products prohibited by the state. Article 13 Those who apply to start a private enterprise must meet the following conditions:
(1) Funds and employees commensurate with the scale of production, operation and service;
(2) Fixed business operations Sites and necessary facilities;
(3) Business scope that complies with national laws, regulations and policies. Article 14 The articles of association of a limited liability company shall include the following matters:
(1) Company name and address;
(2) Purpose and business scope of the company;
(3) Registered capital and the amount of capital contribution of each investor;
(4) Investors’ names, domiciles and investors’ rights and obligations;
(5) The organizational structure of the company;
(6) Conditions for dissolution of the company;
(7) Conditions for investors to transfer capital;
(8) Profit distribution and Methods for sharing losses;
(9) Procedures for amending the company's articles of association;
(10) Other matters that need to be stipulated. Article 15 To apply for setting up a private enterprise, one must present relevant certificates to register with the industrial and commercial administration authority where the enterprise is located. Only after approval and issuance of a business license can the business be opened.
Article 16 If a private enterprise divides, merges, transfers, relocates, or changes its business scope, it must apply for change registration or re-registration with the industrial and commercial administration authorities. Article 17 When a private enterprise goes out of business, it shall submit an application to the industrial and commercial administration authority thirty days before the closure, and the registration shall be deregistered upon approval.
When a private enterprise goes out of business, it must liquidate its assets and repay its debts. Article 18 When a private enterprise goes bankrupt, it must undergo bankruptcy liquidation and repay its debts. Specific measures will be formulated separately. Article 19: Private enterprises with legal person qualifications shall handle business opening registration, change registration and cancellation registration in accordance with the provisions of the "Regulations of the People's Republic of China on the Registration and Management of Enterprise Legal Persons". Chapter 4 Rights and Obligations of Private Enterprises Article 20 Investors in private enterprises enjoy ownership of their properties in accordance with the law, and their properties can be inherited in accordance with the law. Article 21 Private enterprises shall enjoy the following rights in production and business activities:
(1) The approved and registered name shall enjoy exclusive rights within the prescribed scope;
(2) Operate independently within the scope of approved registration;
(3) Decide on the organizational structure of the enterprise, recruit or dismiss employees;
(4) Decide on the enterprise’s wage system and profit distribution form;
(5) Formulate the enterprise’s product prices and charging standards in accordance with national price management regulations;
(6) Enter into contracts;
(7) Apply for patents , registered trademark.