Limited liability company
Limited liability company is an independent corporate entity, which has a series of advantages. Firstly, the limited company has the ability of civil rights and interests and civil acts, enjoying civil rights and obligations independently according to law; secondly, the scope of the civil obligations of the limited company to the outside world is all its wealth, which will not touch on the personal wealth of shareholders; thirdly, the shareholders of the limited company assume obligations to the company within the limit of their subscribed capital contributions.
One-man Company Limited
1. Advantages of one-man company
From the point of view of one-person company's system setting, the organizational structure of "one-person company" is simple. There is no shareholders'meeting and board of directors, only one shareholder, all the owners and operators are in one, and there is no agency cost, and there is no difference between the purpose function of all the owners and operators. The decision-making is fast and flexible, and it can cope with complex and changeable market demands. It has the advantages of simple internal structure, flexible operation mechanism and high operation efficiency that can not be replaced.
2. The drawbacks of one-man company
One-man company has its foundation and important value, but at the same time its drawbacks are obvious.
(1) Lack of restraint on shareholders'rights and interests
There is only one shareholder in a "one-person company", and it is impossible to set up a general meeting of shareholders and a board of directors. Investors have absolute authority, there is no effective restraint on their behavior within the company, lack of checks and balances between institutions, one shareholder controls the operation, decision-making and personnel rights of the company, and the company does not implement necessary procedures or necessary records in the decision-making of serious matters.
(2) A series of drawbacks caused by the lack of restraint on shareholders'rights and interests
Because of the special shareholder composition of one-person company and the lack of relatively strict restrictions and restrictions on shareholder's rights and interests, one-person shareholder can mix company's wealth and shareholder's wealth at will, use company's wealth for private use, pay huge remuneration to oneself, suspend self-trading with the company, guarantee or borrow for oneself in the name of the company, so as to evade legal obligations and deeds by doing tricky things. Obligations of contract or tort, etc.
(3) A one-person company allows creditors or counterparts to take greater risks
The above-mentioned confusion has made it difficult for the company's counterparts to know whether they are buying or selling to the company or individual shareholders. Under the protection of limited obligations, even if the company's wealth is in existence, one shareholder can hide behind the corporate veil without being checked by the company's creditors or other counterparts, which makes the company's creditors or counterparts bear too much risk.
(4) The shareholders'own risk of one-person company.
For a one-person company, besides letting creditors or counterparts bear greater risks, its shareholders themselves also have considerable legal risks. Article 63 of the Company Law stipulates: "If the shareholders of a one-person limited liability company cannot prove that the company's wealth is independent of the shareholders'own wealth, they shall bear joint and several obligations to the company's debts." This undoubtedly strengthens the appeal and restriction to one-person shareholders. Once one-person shareholders can not prove the independence of company wealth and their own wealth, they will be pleaded to assume joint and several obligations to the debts of the company, and the limited obligations of shareholders originally received and maintained will be broken.
Compared with multi-shareholder companies, the establishment of partnership enterprises is not complicated, and there are more chips that can be used for collaborative investment between partners, which can better absorb entrepreneurship partners. For example, management experience, technological advantages, human resources, customer orders and so on can be used as soft resources investment, and these soft investments in the establishment of corporate enterprises are not easy to evaluate equity, difficult to reflect in the financial statements, but in partnerships, it is very useful to deal with, as long as the partnership agreement between partners, there is no legal obstacle. However, the drawback of partnership is that partners assume unlimited obligations and joint and several obligations to each other.
A sole proprietorship enterprise is an organizational form between an individual industrial and commercial household and a one-person company. Compared with individual businesses, they have better reputation guarantee in the market; compared with the company system.
Individual businessmen and businessmen
Individual industrial and commercial households are the smallest and most basic economic form. The cancellation is simple, there are no strict management restrictions, flexible operation and decision-making, and low management cost. However, it is difficult to be recognized in the market, especially in large commodity trading and business negotiation venues, and assume unlimited obligations with personal and family wealth. In the early stage of entrepreneurship, individual business households can operate in the form of technology and products. When technology or products are mature in the market, they can start their existing business mode by setting up a company-based enterprise.
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