Due to the nature of the work, the author has been asked countless times about whether to choose self-employed or a company for industrial and commercial registration in Xi'an. By comparing the pros and cons between companies and self-employed, I suggest that you choose a company for industrial and commercial registration. The specific reason is today Just say it all at once! The following Xi'an Industrial and Commercial Agency will give you a detailed explanation.

Self-employed and company interpretation

Self-employed businesses refer to self-employed businesses that have been registered with the industrial and commercial administrations at all levels and have received a "business license" in accordance with the "General Principles of the Civil Law" and the "Regulations on Individual Industrial and Commercial Households". Specifically, it refers to the self-employed citizens who are engaged in activities such as industry, commerce, construction, transportation, catering, and service within the scope of the law, approved and registered in accordance with the law.

The company is established in accordance with the "Company Law of the People's Republic of China" and is a corporate legal person formed by shareholder investment for profit-making purposes. The company has independent legal person property, enjoys legal person property rights, and assumes responsibility for the company's debts with all of its property, including limited liability companies and joint stock limited companies.

The difference between self-employed and company

1. Legal personality

Self-employed individuals do not have legal personality, and companies have legal personality.

2. Joint and several liability

Self-employed individuals have unlimited joint and several liability laws, and limited liability companies have limited joint liability.

For example: self-employed business loses money, you yourself have to be responsible for all debts. A limited liability company shall be liable for losses incurred in doing business within the limit of the registered capital when the company was registered.

3. Tax incentives

Self-employed individuals are generally taxed based on their location, size, number of employees, and sales of goods based on estimated sales. Regardless of the amount of income in the current month, whether there is income or not, the tax will be paid according to the fixed tax amount.

A limited liability company requires the company to pay taxes on the income it declares, and if there is income, it will not be paid. Small-scale taxpayers whose quarterly income does not exceed 90,000 yuan can enjoy preferential tax exemption policies.

4. Tax collection

Self-employed individuals can levy value-added tax and pay personal income tax at a fixed rate.

Companies levy taxes based on actual income and pay value-added tax and corporate income tax.

Several misunderstandings about self-employed

1. Self-employed can "not keep accounts"

Article 2 of the "Interim Measures for the Administration of Account Establishment of Individual Industrial and Commercial Households" stipulates: "All individual industrial and commercial households engaged in production and business operations with fixed production and business premises shall establish, use and keep them in accordance with the provisions of laws, administrative regulations and these Measures. Accounting books and vouchers, and accounting according to legal and valid vouchers."

2. Self-employed individuals can "do not pay taxes"

According to the "Announcement of the State Administration of Taxation on Issues Concerning the Exemption of Value-Added Tax for Small and Micro Enterprises" (State Administration of Taxation Announcement No. 52 of 2017), as long as it is a small-scale taxpayer, both self-employed and companies can enjoy a monthly income of not more than 30,000 The quarterly income does not exceed 90,000 yuan, exempt from VAT.

3. Self-employed can "no annual inspection"

According to Article 14 of the Regulations on Individual Industrial and Commercial Households, “Individual industrial and commercial households shall apply to the registration authority for annual inspection within the prescribed time period each year”, and Article 23 “Individual industrial and commercial households shall not apply for annual inspection within the prescribed time limit. The registration authority shall order the correction within a time limit; if the correction is not made within the time limit, the business license shall be revoked."

4. Self-employed can "not approve"

For all business scopes involving pre- or post-approval, self-employed businesses and companies need to go through approvals, and in accordance with Article 22 of the "Regulations on Individual Businesses," The authorities ordered corrections and imposed a fine of less than 1,500 yuan; if the circumstances were serious, the business license would be revoked. "If there are changes to self-employed individuals, they also need to go through changes registration like companies.

Reasons for recommending registered companies

1. "Company" cannot be included in the name of the self-employed

In the mass entrepreneurship, the wave of innovation, operating externally in the name of a company, at least sounds "higher, larger, and superior" than an individual.

2. The self-employed cannot be transferred but the company can

Self-employed operators cannot be transferred like companies. According to Article 10 of the "Regulations on Individual Industrial and Commercial Households", "Individual industrial and commercial households who change their operators shall, after the cancellation of registration, be re-applied for registration by the new operator."

3. Self-employed businesses cannot open branches but companies can

One self-employed can only have one business place, and one person can only register one self-employed. The company can not only establish branches and subsidiaries, but also establish enterprise groups.

4. The self-employed cannot attract investors and partners, but the company can

Self-employed businesses are based on individuals as operators and bear unlimited legal liabilities. Moreover, since self-employed businesses have no shares, no one is willing to partner and invest in a self-employed business.

5. The corporate system is the development trend of economic organizations

At present, economic matters such as doing business, negotiating cooperation, and signing contracts are all carried out between companies. Internet platforms such as Taobao and WeChat are supporting corporate merchants. Companies are more cost-effective than self-employed in terms of supporting policies.

Moreover, the registered companies have implemented the subscription system, and the company may have some troublesome procedures, but it can basically be outsourced to professional agents for a few hundred yuan. Compared with the company, the sense of existence of self-employed will become weaker and weaker. That's why it is recommended that you choose to register as a company.

The above is the detailed explanation of the industrial and commercial registration provided by Xi'an Industrial and Commercial Agency . I hope that it will be helpful to everyone. For more professional questions, please call.