What are the common forms of organization for SMEs? What are the advantages and disadvantages of each

There are three main types of enterprises: sole proprietorships, partnerships, and corporations

1, sole proprietorships,

is a business entity established in China in accordance with the laws of China, invested in by a natural person, with property owned by the investor personally, and the investor bears unlimited liability for the debts of the enterprise with his personal property.

The Law of the People's Republic of China on Individually Owned Enterprises was adopted by the Standing Committee of the Ninth National People's Congress of the People's Republic of China at its eleventh meeting on August 30, 1999, and came into force on January 1, 2000, with the following provisions.

The following conditions shall be met for the establishment of a sole proprietorship enterprise:

(1) the investor shall be a natural person;

(2) there shall be a lawful enterprise name;

(3) there shall be a capital contribution declared by the investor;

(4) there shall be a fixed place of production and operation as well as necessary conditions for the production and operation;

(5) there shall be necessary practitioners.

2. A partnership enterprise,

refers to a for-profit organization established in China by law, in which the partners enter into a partnership agreement, *** contribute capital together, operate in partnership, *** enjoy the benefits and *** bear the risks, and assume unlimited joint and several liability for the debts of the partnership.

The Law of the People's Republic of China on Partnership Enterprises, adopted at the Twenty-fourth Session of the Standing Committee of the Eighth National People's Congress on February 23, 1997, and effective as of August 1, 1997)

The establishment of a partnership enterprise shall be subject to the following conditions:

(1) There are two or more partners, all of whom are unlimitedly liable in accordance with the law;

(ii) a written partnership agreement;

(iii) capital contributions actually paid by each partner;

(iv) the name of the partnership;

(v) a place of business and the necessary conditions for engaging in the partnership business.

Partners may make capital contributions in money, in kind, land use rights, intellectual property rights or other property rights; the said capital contributions shall be the legal property and property rights of the partners.

With the consensus of all the partners, the partners may also contribute with labor, and the evaluation method shall be determined by the consultation of all the partners.

Partners shall fulfill their obligations of capital contribution in accordance with the mode and amount of capital contribution and the time limit for payment of capital contribution as agreed in the partnership agreement.

3. A company

is a limited liability company or a joint stock company established in China in accordance with the law.

The company is an enterprise legal person, has independent legal person property, enjoy legal person property rights. The company is liable for the debts of the company with all its property.

The shareholders of a limited liability company are liable to the company to the extent of their capital contributions; the shareholders of a joint-stock company are liable to the company to the extent of their subscribed shares.

The Company Law of the People's Republic of China, as amended and adopted at the 18th Meeting of the Standing Committee of the Tenth National People's Congress of the People's Republic of China on October 27, 2005, shall come into force on January 1, 2006, with the following provisions.

Shareholders may make capital contributions in money, or in kind, intellectual property rights, land use rights and other non-monetary property that can be valued in money and can be transferred in accordance with the law; however, except for those properties that are prohibited from being used as capital contributions under the provisions of laws and administrative regulations.

The monetary contribution of all shareholders shall not be less than thirty percent of the registered capital of the limited liability company.

Taxation is closely related to the choice of the form of organization of the enterprise

The choice of the form of organization of the enterprise tax planning issues:

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