1. Registered capital
1. Self-employed individuals have no requirement for registered capital when registering in industrial and commercial registration
2. Limited companies need registered capital when registering
2. Registration
1. Individual industrial and commercial households only have business licenses, which is simple and fast.
2. Limited companies need articles of association in addition to their business licenses. This document varies according to different countries and regions, such as Hongkong, Singapore, island countries and Chinese mainland. 3. Different tax incentives
1. Self-employed industrial and commercial households do not enjoy preferential policies, have no investment risks and do not need accounting. Limited companies need to make accounts and file tax returns every month, and they can enjoy preferential tax policies.
2. Individual industrial and commercial households are not allowed to apply for a 16% tax increase, but only small-scale taxpayers (3%). The limited company can apply for a 16% general taxpayer VAT invoice.
4. Different tax payment and tax calculation methods
1. Individual industrial and commercial households:
Generally, they pay taxes at a fixed rate, regardless of whether they have income or not. If they don't choose to pay taxes at a fixed rate, they can pay taxes according to the actual account establishment. There are three situations
The amount of tax payment for account establishment is less than 9, RMB: there is no need to pay taxes (referring to a quarter)
The amount.
2. Tax payment by limited liability companies:
The corporate income tax rate is 25%. ?
eligible small-scale low-profit enterprises are subject to enterprise income tax at a reduced rate of 2%. ?
High-tech enterprises that need to be supported by the state are subject to enterprise income tax at a reduced rate of 15%
V. Account Heading
Self-employed individuals do not have the legal representative's statement, and the account opening belongs to personal accounts
Limited company bank accounts belong to corporate corporate accounts, and there is a big difference between individual industrial and commercial households and limited liability companies!
1. The definitions of the two are different
1. Individual industrial and commercial households refer to those citizens who are engaged in industrial and commercial operations within the scope permitted by law, such as small shops selling stewed vegetables and small restaurants opened by husband and wife at the gate of the community. Under normal circumstances, the scale of operation of individual industrial and commercial households is small;
2. A limited liability company refers to an economic organization registered in accordance with the Regulations of the People's Republic of China on the Administration of Company Registration, which is established with contributions made by less than 5 shareholders, and each shareholder bears limited liability to the company with the amount of capital subscribed, and the company is liable for its debts with all its assets. For example: XXX limited liability company, etc.;
Second, the names are different
1. The names of individual industrial and commercial households are mostly XXX stores and XXX salesrooms;
2. The names of limited liability companies are mostly XXX limited liability companies;
Third, the business premises are different
1. Individual industrial and commercial households are not required to have fixed business premises, such as street vendors;
2. When a limited liability company is registered, it must fill in a fixed business place, which can be owned or rented;
Fourth, the registered capital is different
1. Individual industrial and commercial households do not need to specify the registered capital. For example, small vendors selling braised dishes on the street do not need to ask for how much registered capital they have;
2. A limited liability company must have registered capital. It used to be a paid-in system, but now it is a subscription system, which means that shareholders unanimously agree to pay their respective investment amounts before XX, XX.
V. The degree of commitment to debts is different
1. The debts of individual industrial and commercial households, if operated by individuals, shall be borne by personal property; Family business, with family property. Because individual industrial and commercial households do not have legal person qualification, they bear unlimited liability for debts. For example, the pot-stewed restaurant mentioned above, because of food problems, eats people to death, then the owner of the pot-stewed restaurant should bear unlimited liability, if it is family-run, then the family should bear unlimited liability;
2. A limited liability company is fully qualified as a legal person, so the shareholders of the company are limited to the amount of capital contribution. For example, in the pot-stewed restaurant mentioned above, if it is a limited company, the amount of capital contribution subscribed by the shareholders of the company is 5, yuan, and even if people die, the shareholders are only responsible for 5, yuan, which will not affect the shareholders' family property;
VI. Differences in taxation
1. Individual industrial and commercial households take the owner as the personal income tax payer. Therefore, individual industrial and commercial households do not pay enterprise income tax, but only pay individual income tax. Article 3 of the Individual Income Tax Law of the People's Republic of China stipulates that the excess progressive tax rate of 5% to 35% shall apply to business income; Article 6 stipulates that the taxable income shall be the balance of the total income in each tax year after deducting costs, expenses and losses.
Article 12 of the Individual Income Tax Law of the People's Republic of China stipulates that taxpayers shall calculate individual income tax on an annual basis after obtaining business income, and the taxpayer shall submit a tax return to the tax authorities within 15 days after the end of each month or quarter, and pay taxes in advance; Settle the income before March 31st of the following year;
2. A limited liability company shall pay enterprise income tax at a rate of 25%. Enterprise income tax is calculated according to the tax year. The tax year starts from January 1st to December 31st in Gregorian calendar.
in addition, when the company pays dividends, if the investor is a natural person and the shareholders get dividends and bonuses, according to the Individual Income Tax Law of the People's Republic of China, the shareholders should also pay individual income tax on the dividends, and the proportional tax rate is 2%. If the investor is a legal person, the dividends and bonuses received belong to the income from equity investment between qualified resident enterprises, which can be treated as tax-free income;
VII. Different procedures
1. Because of their small scale, individual industrial and commercial households can't set the standard of account books as stipulated in the Interim Measures for the Administration of Account-keeping of Individual Industrial and Commercial Households, so they don't need to set up account books. Of course, if the individual industrial and commercial households are large, they can hire professional institutions approved to engage in accounting agency bookkeeping business or qualified accountants to set up accounts and handle accounts on their behalf;
2. Limited liability companies are relatively formal, and should abide by the relevant provisions of the Company Law, and should prepare financial and accounting reports at the end of each fiscal year; To sum up, there is still a big difference between individual industrial and commercial households and limited liability companies. Please choose carefully!
1. Different business premises
Limited companies must have their own fixed business premises and employees, while individual industrial and commercial households have no restrictions. Individual industrial and commercial households engaged in passenger and cargo transportation, trafficking, setting up stalls and mobile services do not need fixed business premises.
2. Different investors
The investor of the limited company is a legal person, and the license is "Business License of Enterprise Legal Person". An enterprise as a legal person can independently enjoy legal rights and undertake legal obligations in the name of the enterprise itself, and the legal rights and obligations directly belong to the enterprise rather than the enterprise investors.
The investment subject of individual industrial and commercial households can only be a natural person, and the license is the "Business License for Individual Industrial and Commercial Households". As a natural person, he participates in economic activities. As the subject of civil legal relations, he does not have the attribute of enterprise legal person and bears unlimited liability, so the "Business License for Individual Industrial and Commercial Households" has no registered capital.
3. Different responsibilities for property
Self-employed individuals bear unlimited responsibilities for property, while limited companies bear limited responsibilities for property. As far as industrial and commercial management fees are concerned, it is better for self-employed individuals, because the government has announced that they will stop collecting industrial and commercial management fees, and limited companies still have to pay them, but the industrial and commercial management fees are several hundred yuan a year, not much.
the legal subject of a limited company is a company, while the legal subject of individual industrial and commercial households is an individual. Limited company's debt commitment is limited liability, and debts exceeding the registered capital can apply for bankruptcy; The debts of individual industrial and commercial households bear unlimited liability, and the debts must be paid off.
4. The tax and financial accounting requirements of the two companies are different
Limited companies must have a sound financial management system, while individual industrial and commercial households have no financial system requirements. The tax difference is that self-employed individuals collect business tax (4% to 6% of monthly turnover), but the monthly turnover is less than 5, yuan, and profits are levied according to personal income tax. Limited companies are the same in business tax, but different in income tax, and the tax rate is relatively high (24% to 33%).
5. The liquidation procedures of the two companies are different
When a limited company is dissolved, the investors will conduct liquidation by themselves or the creditors will apply to the people's court to appoint a liquidator for liquidation. However, there is no liquidation procedure for individual industrial and commercial households when they close their business. They only need to go through the formalities of closing their business with the original registration authority and hand in their business licenses.
1. The names are different.
individual industrial and commercial households can be named as a certain store, a certain business department, a certain studio, etc., but not a certain company; Limited liability companies are different. They can be called XXX company, XXX limited company or XXX limited liability company.
2. The legal status and the risks borne by the investors are different.
individual industrial and commercial households do not have independent legal personality, capacity for civil rights and capacity for civil conduct, and cannot independently bear civil liabilities. Therefore, individual operators are jointly and severally liable for their debts.
Companies have independent legal personality and can independently bear civil liabilities. As an investor, he shall be liable for the company's debts to the extent of his subscribed capital contribution.
example: individual industrial and commercial households owe 1, yuan to foreign countries in the course of business operation, and these individual industrial and commercial households must bear joint and several liabilities until they are paid off. If it is a company with a registered capital of only 3, yuan, the upper limit of the investor's liability for the company's debts is 3, yuan. For the excess of 7, yuan, the investor may not be liable. If the company is unable to repay, it may choose bankruptcy.
3. There are different requirements for taxes, tax declaration methods and accounting.
under normal circumstances, both individual industrial and commercial households and limited companies are required to pay value-added tax, urban maintenance and construction tax, education surcharge and local education surcharge, and all of them can enjoy the preferential policy of exemption from value-added tax if their monthly income is less than 1, yuan or their quarterly operating income is less than 3, yuan.
individual industrial and commercial households are required to pay personal income tax on their operating income; The company's operating income needs to pay enterprise income tax. If the company is profitable and distributes the profits to individual investors, it needs to pay 2% personal income tax according to the dividend interest dividend. This is the tax difference between the two.
if individual industrial and commercial households do not have the conditions to establish accounts, they can implement the approved tax collection policy, as long as the boss knows how much he earns. However, the company needs to set up accounting books, and the tax is levied by auditing. Under normal circumstances, the approved collection policy may not be implemented.
For example, it is more appropriate to open a small shop and shop early, or a barber shop and register as an individual industrial and commercial household; Oh, if you open a large supermarket or develop a real estate project, it is more appropriate to register a limited liability company.
hello, let me answer your question.
Your question is: What is the difference between individual industrial and commercial households and limited companies?
first of all, we should define the concepts of individual industrial and commercial households and limited companies.
1. Individual industrial and commercial households:
Article 2 of the Measures for the Administration of Registration of Individual Industrial and Commercial Households: "Citizens who have the ability to operate shall be registered by the market supervision and administration department, obtain the business license of individual industrial and commercial households, and carry out business activities according to law." . The registered items include: (1) the name and domicile of the operator; (2) Composition form; (3) Business scope; (4) business premises;
2. Limited company:
A limited company is an enterprise legal person established under the conditions stipulated in the Company Law and relevant laws. Shareholders are liable to the company to the extent of their capital contribution, enjoy the benefits in proportion to their shares, and the company is liable for the debts of the company with all its assets.
Secondly, the difference between them.
1. Different organizational forms. Limited company is an enterprise legal person, not a natural person. Individual industrial and commercial households are not corporate legal persons, but natural persons.
2. Different responsibilities. A limited company only bears limited liability within all its assets, and shareholders only bear limited liability within their capital contribution to the company, and debts exceeding some laws are not supported. And individual industrial and commercial households have to bear unlimited liability.
3. The conditions for establishment (establishment) are different.
Limited companies need to be established according to the Company Law and relevant laws, and there are barriers. There are many documents to be submitted to the company registration authority, such as the resolutions of the company's board of directors, the articles of association, the list of all shareholders and the proportion of shareholders' investment. The conditions for the establishment of individual industrial and commercial households are simple. As long as you are a citizen of China and have the ability to operate, you can go to the market supervision department to obtain the business license of individual industrial and commercial households and conduct business activities.
4. The legal requirements are different. Co., Ltd. implements the general manager responsibility system. The shareholders' meeting, the board of directors and the board of supervisors of the company need to be established according to legal requirements; There must be the company's official seal, financial seal, invoice seal, contract seal, legal representative seal and other seals; It is necessary to handle basic bank accounts, bookkeeping and tax returns, payment of social security, annual corporate reports, etc. These requirements are not needed by individual industrial and commercial households.
the above are personal opinions and are for reference only!
There is a big difference between self-employed and limited companies. If you elaborate, it will be a long story, so I will briefly summarize some points for you here.
1. First, the organizational forms are different. One is individual industrial and commercial households, and the other is limited companies. Individual industrial and commercial households are small in scale, while limited companies are large in scale, so there will be restrictions on the number of funds.
2. Tax difference. Self-employed individuals generally estimate your sales according to their location, size, number of employees, etc., and then give a tax. No matter how much income they earn in the current month, they have to pay taxes according to the fixed tax amount, and the relevant tax amount cannot be deducted. Co., Ltd. requires enterprises to have sound accounting and accounts, and pay taxes according to the income declared by the enterprises themselves, which can offset the relevant taxes.
3. The establishment conditions are different. Where a limited liability company requires registered capital, the shareholders shall pay the amount of capital contribution stipulated in the articles of association; Individual industry and commerce