Three Forms Of Investment And Entrepreneurship

The three form of investment and entrepreneurship is money in the hands of investors. They want to invest in Entrepreneurship and find a sense of being a boss.

What industry to invest depends on the market and its familiarity with the industry.

Reporters learned from relevant departments that at present, the organizational form of Chinese enterprises mainly includes individual proprietorship enterprises, partnership enterprises, limited liability companies and Limited by Share Ltd, stock cooperation system, etc.

Their legal provisions are different and their characteristics are different. The reporters mainly introduce three forms of personal investment: individual proprietorship, partnership enterprise and limited liability company.

Individual proprietorship: when the proprietor feels, the individual proprietorship enterprise, also known as the individual proprietorship enterprise, refers to a business entity that is invested by a natural person, the property is owned by the investor and is indefinitely liable to the enterprise debt with his personal property.

Such enterprises tend to be smaller and more active in small processing, retail business and service industries.

The advantage of individual proprietorship is first manifested in the constraints of business management.

Opening, pferring and closing are generally required to register with the industry and Commerce Department, with simple procedures.

The owners have great freedom in deciding how to manage, flexible and flexible ways of dealing with problems.

Because it is a sole proprietorship, the sales volume, profit, production process and financial status of the enterprises can be kept secret, which will undoubtedly help enterprises to maintain their competitive edge.

Moreover, unlike corporate enterprises, a sole proprietorship enterprise only pays personal income tax, does not need double taxation, and after tax profits is owned by individuals, so it does not need to share with others.

In addition, for investors, they are mainly satisfied with personal satisfaction rather than profits, which is the unique advantage of individual proprietorship enterprises.

However, individual proprietorship enterprises also have an unavoidable disadvantage, which is mainly caused by individuals' liability for unlimited property.

When the assets of an enterprise are not enough to repay the debts of the enterprise, the law stipulates that the owner of the enterprise should not pay the property of the investment enterprise but use the other assets of the owner of the enterprise to repay the debts.

That is to say, once the business fails, the owners may lose their fortune.

Partnership system: mutual trust is crucial. Partnership enterprises, also known as partnership enterprises, are business organizations that conclude partnership agreements by two or more partners, CO invest, cooperate, share profits, take risks together, and assume unlimited joint liabilities for partnership debts.

Partners may make contributions through money, material objects, land use rights, intellectual property rights or other financial rights. If all partners agree with each other through consultation, partners can also make contributions through labor services, and all partners shall have the same rights in carrying out partnership affairs.

The number of partnership enterprises is more than that of individual proprietorship and corporate enterprises. It is more common in advertising, trademark, consulting, accounting firms, law firms, stock brokers, retail businesses and other industries.

There are many types of partners, which can be divided into the following types.

1 general partners have unlimited liability for corporate debts and engage in business operations. Each partnership must have at least one general partner, who plays the most active role in the enterprise. It has the right to sign contracts on behalf of the enterprise and bear the responsibility for all debts of the enterprise.

The 2 limited partners have limited liability for the debts of the enterprise in the limit of the amount of capital invested by the enterprise, and do not need to compensate their debts with their own property. Because of the small risk, they will not play an important role in the partnership.

The other 3 partners usually refer to partners, secret partners, anonymous partners and nominal partners who do not participate in specific management.

Compared with the sole proprietorship enterprise, the partnership has a relatively wide source of funds and a high degree of credit, so it is easy to raise funds, such as obtaining loans from banks and buying products from suppliers. The owners of the partnership brainstorming, enhancing the decision-making ability and management level, and improving the market competitiveness of enterprises.

However, partnership enterprises also have disadvantages. First of all, partners should bear unlimited joint and several liability, so that their family property has operational risks. Therefore, partnership must be based on mutual trust. Secondly, the survival and death factors of enterprises are too concentrated. If the partnership produces differences in business and mutual distrust, it will affect the effective operation of enterprises.

Third, property rights are not easy to move. According to the law, partners can not freely pfer their share of property. The pfer of property rights must be approved by all partners. At the same time, the pferor must agree with all partners before buying property rights and becoming a new partner.

Limited liability company: the investor risk is limited. The limited liability company is generally suitable for small and medium-sized enterprises. It is a legal person organization that is jointly funded by more than two shareholders or less than 50. The shareholders are responsible for the company with the amount of their capital contribution, and the company is responsible for the company's assets.

The limited liability system is implemented by the limited liability company.

Shareholders are limited in the amount of their capital contribution to the company's debts, and the company takes full responsibility for the company's debts with all its assets.

If a company fails to pay off its due debts, it will declare bankruptcy in accordance with the law.

This system protects the legitimate rights and interests of investors, operators and creditors from the system, and speeds up capital concentration while dispersing risks.

The "three principles of capital" are implemented in the limited liability company.

That is, capital determination principle, capital maintenance principle and capital invariance principle.

The principle of capital determination means that when a company is established, it must make explicit provisions on the company's capital in its articles of association and be authorized by all shareholders, otherwise the company can not register and establish it.

The company law of China stipulates that the registered capital of a limited liability company is the amount of capital actually paid by relevant shareholders in the company registration.

The registered capital of scientific and technological development, consulting and service companies is not less than RMB 100 thousand yuan; the number of companies mainly retailing retail is not less than 300 thousand yuan; the number of companies based on commercial wholesale or production and operation is not less than 500 thousand yuan.

The principle of capital maintenance refers to the property that a company should always keep its capital equivalent in the course of its existence, so as to prevent the substantial reduction of capital and protect the interests of creditors. At the same time, it also prevents shareholders from demanding excessive profits and ensuring the normal operation of business activities.

The principle of capital change means that the capital of a company can not be changed at will as soon as the capital is determined. If it needs to be increased and reduced, it must be carried out in strict accordance with the rules and regulations.

Limited liability company can not raise shares or issue shares publicly. It can not be set up and can only be initiated.

Because the limited liability company is responsible for the company's business risk in the limit of the contribution of the investor, this will encourage investors to dare to diversify investment and get the best return on investment through optimizing the investment portfolio. From the perspective of the company, it can also attract more investors and promote the effective concentration of capital, and the diversification of the property right will inevitably lead the company to form an effective corporate governance structure and promote the scientization and democratization of the decision.

Limited liability companies elect and replace directors from shareholders' meetings. The appointment or dismissal of company managers by the board of directors and the separation of ownership and management rights are beneficial to the stability of the company and to the expansion of the company.

Of course, there are disadvantages, too. First of all, double taxation, that is, company profits should be turned over to the company income tax; when profits are sent to shareholders as dividends, shareholders will also turn over to enterprises to invest income tax or personal income tax.

Due to the fact that the scope and scale of raising funds are not large, it is difficult to adapt to large-scale production and operation needs. Because property rights can not flow adequately, the operation of assets of enterprises is also limited.