Private enterprises must engage in business activities within the scope prescribed by national laws, regulations and policies. Article 4 Employees of private enterprises shall organize trade unions according to law. The legitimate rights and interests of employees are protected by national laws. Article 5 Private enterprises may establish private enterprise associations. Chapter II Types of Private Enterprises Article 6 Private enterprises are divided into the following three types:
(1) A wholly-owned enterprise;
(2) Partnership enterprises;
(3) Limited liability companies. Article 7 A wholly-owned enterprise refers to an enterprise invested and operated by one person.
The investors of a sole proprietorship enterprise shall bear unlimited liability for the debts of the enterprise. Article 8 A partnership enterprise refers to an enterprise in which two or more persons invest and jointly operate in accordance with the agreement, and bear profits and losses.
A partnership enterprise shall have a written agreement.
Partners shall be jointly and severally liable for the debts of the enterprise. Article 9 A limited liability company refers to an enterprise in which investors are liable to the company with their capital contributions and the company is liable to its debts with all its assets.
A limited liability company shall meet the following requirements:
(1) The company name indicates the words limited liability company or limited company;
(2) Having a company's articles of association that conform to the provisions of these Regulations;
(three) the number of investors is more than two and less than thirty;
(4) The registered capital has obtained the statutory capital verification certificate;
(5) When an investor transfers its capital contribution, it shall obtain the consent of other investors. Where there are more than three investors, the consent of more than half of the investors is required;
(6) The registered capital shall not be reduced;
(7) No shares may be issued to the public.
Where there are more than 30 investors in a limited liability company, a special declaration shall be made to the administrative department for industry and commerce, and registration can only be carried out after approval. Article 10 A limited liability company shall obtain legal person status according to law. Chapter III Establishment and Closure of Private Enterprises Article 11 The following persons may apply for the establishment of private enterprises:
(1) rural villagers;
(2) Unemployed people in cities and towns;
(3) Individual industrial and commercial operators;
(4) Persons who have resigned or resigned;
(5) Retirees and other personnel permitted by national laws, regulations and policies. Twelfth private enterprises can engage in the production and operation of industries such as industry, construction, transportation, commerce, catering, service, repair and scientific and technological consulting within the scope permitted by national laws, regulations and policies.
Private enterprises shall not engage in the production and operation of military industry and financial industry, and shall not produce or operate products prohibited by the state. Thirteenth to apply for the establishment of a private enterprise shall meet the following conditions:
(1) Funds and employees suitable for the scale of production, operation and service;
(2) Fixed business premises and necessary facilities;
(3) The business scope conforms to the provisions of national laws, regulations and policies. Article 14 The articles of association of a limited liability company shall include the following items:
(1) Name and domicile of the company;
(2) The purpose and business scope of establishing the company;
(3) The registered capital and the amount of investment made by each investor;
(4) The name and domicile of the investor and the rights and obligations of the investor;
(5) The organizational structure of the company;
(6) Conditions for dissolution of the company.
(7) Conditions for investors to transfer their capital contribution;
(8) Measures for profit distribution and loss sharing;
(9) Procedures for amending the Articles of Association;
(ten) other matters that need to be stipulated. Fifteenth to apply for the establishment of a private enterprise, you must hold the relevant documents to register with the administrative department for industry and commerce where the enterprise is located, and you can start business only after being approved and issued a business license. Article 16 Where a private enterprise is divided, merged, transferred, relocated or changes its business scope, it shall register the change or re-register with the administrative department for industry and commerce. Article 17 When a private enterprise closes its business, it shall apply to the administrative department for industry and commerce 30 days before it closes its business, and cancel its registration after approval.
When a private enterprise closes its business, it shall liquidate its property and repay its debts. Article 18 When a private enterprise goes bankrupt, it shall go through bankruptcy liquidation and pay off its debts, and the specific measures shall be formulated separately. Nineteenth private enterprises with legal person conditions shall handle industrial and commercial registration, change of registration and cancellation of registration in accordance with the provisions of the Regulations on the Administration of Enterprise Legal Person Registration in People's Republic of China (PRC). Chapter IV Rights and Obligations of Private Enterprises Article 20 Investors of private enterprises shall enjoy ownership of their property according to law, and their property may be inherited according to law. Twenty-first private enterprises enjoy the following rights in production and business activities:
(a) the name approved for registration enjoys the exclusive right within the prescribed scope;
(2) Operating independently within the scope of approval and registration;
(3) Deciding on the organizational structure of the enterprise, and recruiting or dismissing employees;
(four) to decide the wage system and profit distribution form of the enterprise;
(five) in accordance with the provisions of the state on price management, formulate the commodity prices and charging standards of enterprises;
(6) Signing contracts;
(7) Apply for a patent or registered trademark.