1000 Business Lessons Every Businessman Must Know

Chapter 13 Registering a company: implement every step well (2)
Site selection is a very big science, and it is rare to see entrepreneurs who can fully grasp this complicated knowledge and put it into practice to ensure success.For most entrepreneurs who are unable to master location selection skills for a while, there is no need to worry at all. The most direct, simplest and most effective method of location selection is to be adjacent to successful companies in the industry.

Successful companies have their own unique advantages in site selection, and have created a commercial atmosphere in their business locations. If you choose to be adjacent to them, although the cost may be slightly higher, small start-ups can rely on the success The popularity brought by the company transitions smoothly, and you can even stay with successful companies and share the "deliciousness" of successful people.

As a production enterprise, it needs a large amount of raw material sources and a large amount of transshipment storage. Therefore, when selecting a site, it must be close to the raw material base as the main line and choose a place with a wide ground.

092. Determine the company’s domicile when registering
When the company is registered, there must be a definite company address, if the company's office space is rented.After renting a house, a rental contract must be signed, and it is generally required to use the same standard rental agreement issued by the Industrial and Commercial Bureau, and ask the landlord to provide a copy of the real estate certificate and a copy of the landlord's ID card.The housing provider shall issue the following certificates respectively according to the ownership of the housing:
(1) If the housing provider has a real estate certificate, it should attach a copy of the real estate certificate and affix the official seal of the property right unit on the copy or be signed by the property right owner.

(2) If there is no property right certificate, the superior of the property right unit or the real estate certificate issuing unit shall explain the situation in the column of "required certification" and seal it for confirmation; if it is located in a rural area, the local government may also sign in the column of "required certification" Opinions on agreeing to engage in business at the location, and affix the official seal.

(3) If the property right is military real estate, a copy of the "Military Real Estate Leasing Permit" stamped with the special seal of the Chinese People's Liberation Army Real Estate Administration should be submitted.

(4) If the house is a newly-purchased commercial house and has not gone through property registration, a copy of the house purchase contract signed by the purchaser or stamped by the purchase unit, a copy of the purchase invoice, and a pre-sale house permit with the official seal of the real estate developer should be submitted a copy of .

(5) If the housing provider is an enterprise approved by the administrative department for industry and commerce and has the right to operate leases, it can directly affix its official seal in the column of "Certificate of Housing Provider", and at the same time issue a copy of the business license affixed with the company's official seal. Then ask for a certificate of title.

[-]. Choose the right company form
093. Choose an Appropriate Form of Entrepreneurial Organization
The process of starting a business is a process of establishing an organization and gradually growing and developing the organization.In the first step of starting a business, in addition to financial preparations, resource preparations, and psychological preparations, an extremely important thing is to choose a suitable entrepreneurial organization form according to your own situation.

Each form of entrepreneurial organization has its own advantages and disadvantages. If you choose the right one, you can avoid disadvantages. If you choose the wrong one, it will bring huge hidden dangers to the future operation.In addition, we must not only understand the pros and cons of various entrepreneurial organizational forms, but also consider what situations and environments these organizational forms are suitable for, and what kind of people they are suitable for operating.

In actual operation, the main organizational forms that can provide small and medium-sized entrepreneurs to choose are as follows: individual industrial and commercial households, sole proprietorships, partnerships, limited liability companies, and joint stock companies.

094. Individual industrial and commercial households: suitable for small retail businesses

Generally speaking, the law has relatively few regulations on individual industrial and commercial households, and the requirements are relatively simple. There is no capital requirement for registration, and the threshold is relatively low.

The disadvantage is that the credit is low. Once it involves a large transaction, the customer may shrink back because you are an individual business, because he feels that it is not safe; the second is that the risk is high, because the legal responsibility of an individual business is unlimited. Responsibility, once something goes wrong, if it is carried out in the name of an individual, it must be borne by all the property of the individual, and if it is carried out in the name of the family, it must be borne by the entire property of the family, which makes people feel trembling.

Therefore, individual industrial and commercial households are more suitable for small retail businesses.

095. Sole proprietorship: self-management, self-responsibility for profit and loss
A sole proprietorship is also commonly referred to by the media as a “one-dollar-as-the-boss” enterprise, which is wholly owned by an individual, and the investor has absolute decision-making power over any business affairs of the enterprise.

1. Advantages
(1) Low registration fee.The procedure is simple, the registration procedure of a sole proprietorship is the simplest, it is easier to obtain relevant registration documents, and the cost is relatively low.

(2) Independent decision-making.Investors have the final say on all business affairs of the company, and there is no need to hold meetings to study, and there is no need to make explanations to the board of directors and general meetings of shareholders. The so-called "small boat is easy to turn around", the boss can adjust the direction of operation at any time according to market changes.

(3) The tax burden is light.Since the enterprise is owned by an individual, the income of the enterprise is the personal income, so only the enterprise income tax is levied and the individual income tax is exempted.

(4) The registered capital is free. The "Sole Proprietorship Law" has no regulations on registered capital. The extreme statement is that one yuan can be a boss.

2. Disadvantages
(1) Low credit reputation and difficult financing.Due to the small amount of registered capital and the poor ability of enterprises to resist risks, it is not easy to obtain bank credit, and at the same time, it is not easy to obtain personal credit.

(2) Unlimited Liability.This is the biggest disadvantage. Once the business loses money, in addition to the company's own property to pay off its debts, personal property will not be spared, which increases investment risks.

(3) Sustainably low.Investors have absolute decision-making power over any affairs of the company, and others have no decision-making power, which increases personal responsibility. If investors make mistakes, the company itself cannot exist.Moreover, personal decision-making also has an arbitrary side, which is highly arbitrary, which is not good for the enterprise.

(4) Limited finances. All the assets of the enterprise are personal assets. With limited finances, it is difficult to achieve great development.

(5) Lack of enterprise management.This is a huge problem with sole proprietorships.

096. Private Partnership: Shared Benefits, Shared Risks
A partnership enterprise refers to a form of business organization based on a contractual relationship between partners. For a common purpose, they agree on joint investment, joint operations, shared benefits, and shared risks.Partnerships are divided into general partnerships and limited partnerships.

1. Advantages
(1) The registration procedure is simple and the cost is low.The registration method is similar to that of a sole proprietorship, the key lies in the mutual agreement between the partners, and the legal basis for the operation of a partnership enterprise is the agreement between them.

(2) It is easy to attract capital and talents.The biggest risk of a partnership is unlimited liability.Limited liability effectively solves this problem.On the one hand, the partnership enterprise manages and assumes unlimited liability through the general partner, which maintains the advantages of the partnership organization such as simple structure, low management cost, close internal relationship and high decision-making efficiency; on the other hand, it can attract those who are unwilling to assume unlimited liability People investing in enterprises can also attract the talents needed by enterprises.

(3) Taxes are lower.Like a sole proprietorship, you only need to pay corporate income tax, not personal income tax.If the annual turnover is less than 3 yuan, the tax rate is 18%; if the annual turnover is 3 to 10 yuan, the tax rate is 27%; if the annual turnover is more than 10 yuan, the tax rate is 33%.

2. Disadvantages
(1) Unlimited Liability.The biggest risk of a partnership is unlimited liability, as well as joint and several liability.Once one of the partners makes a mistake, all partners will be implicated.Therefore, the choice of partners and the drafting of the partnership agreement are very important.Some people think that joint liability can be specified in the corresponding clauses in the partnership agreement to reduce personal risks, but the law of our country stipulates that the sharing ratio between partners is not binding on creditors, and creditors can request the partners to pay according to their own rights and interests. One or more of them shall bear all the repayment responsibilities.

(2) Easy to internal friction.In a company, the capital has the final say, while in a partnership, each partner enjoys equal rights. This is an advantage, but it also brings problems.Once there is a gap between the partners, it is difficult to reach a consensus on corporate decision-making, and it is difficult to push each other and conduct business.If there is a problem with the quality of the partnership, there will be endless troubles.

(3) It is difficult to transfer the property of the partners.Since the property transfer of the partners affects the vital interests of the partnership enterprise and the partners, the law requires strict requirements on this.Outward transfers must be agreed by all partners, rather than adopting the principle that the minority obeys the majority.This problem also exists in the withdrawal of the partnership. Unless it is clearly stipulated when the partnership agreement is drawn up, it is difficult to withdraw.

097. Limited liability company: an effective organizational form for small and medium-sized enterprises

A limited liability company is composed of more than a certain number of shareholders (generally 5) and less than a certain number of shareholders (generally 21). The shareholders are limited to the amount of their capital contribution and are responsible for the limited repayment of the company's debts, referred to as a limited company. .

1. Advantages of Limited Company

(1) The establishment of a limited company is relatively simple. It only needs to be initiated and established without raising shares, and the capital contribution of shareholders can be paid in full when the company is established.The number of shareholders is small, the company's internal and external relations are relatively simple, whether to set up a supervisor is up to the company's own decision, and the method of convening and resolution of the shareholders' meeting is also simple and easy.

(2) The organizational structure of a limited company is relatively simple, and the company is small in scale. It generally adopts a single-track system of directors for management, that is, the director and manager are held by the same person, and linear leadership is implemented.

(3) The operating risk of a limited company is lower than that of an unlimited company, because shareholders are only liable to pay off the company's creditors. Even if the company goes bankrupt, it will not affect the shareholders' personal property, which has a positive effect on the establishment of a limited company.

(4) The number of shareholders of a limited company is small, and the relationship between them is relatively close, which is conducive to communicating with each other, coordinating opinions, and forming satisfactory decisions.

2. Disadvantages of Limited Company

(1) A limited liability company has only limited repayment obligations to creditors, so the company's credit level is not high.

(2) A limited company has the nature of a partnership company, so the transfer of share capital is subject to relatively strict restrictions. The internal rules of the company all stipulate the terms of restrictions on the transfer of share capital, and it is very rare for a limited company to transfer its share capital to outsiders. Like an unlimited company, the transfer of share capital is more difficult.

(3) A limited company is conducive to the generation of speculative psychology. Since a limited company only bears limited liability, shareholders often take relatively large risks with relatively small capital.

The supply and demand relationship in the market changes drastically, and the degree of credit required by a limited company is not very high. For example, entertainment companies, where shareholders are relatively close and familiar with each other, can adopt the organizational form of a limited company.It is an effective organizational form suitable for small and medium-sized enterprises, and suitable for capital joint companies with legal person conditions.

098. Joint stock company: easy form for large companies

A joint-stock company, also known as a joint-stock company, issues shares. After shareholders invest in shares, the company should deliver shares to shareholders. Shareholders determine the weight of shareholder rights based on the number of shares. The registered capital requirement is high, and 500 million yuan can be registered. There is no upper limit on the number of shareholders for the establishment of a joint stock limited company, and there can be many shareholders. The law controls it more strictly, requiring it to publicly disclose a lot of information to the outside world. There are many mandatory procedural requirements that must be strictly followed during the operation of the company. It is easy to increase capital and expand shares, the scale of the company is easy to expand, the liquidity of the stock is good, and the investment is easy to realize.Large giant companies usually need to adopt this form.

1. Advantages of a joint stock company

(1) A large amount of capital can be quickly gathered, and social idle funds can be widely gathered to form capital, which is conducive to the growth of the company;

(2) Conducive to diversifying the risks of investors;

(3) It is conducive to accepting social supervision.

2. Disadvantages of a joint stock company

(1) The establishment procedures are strict and complicated;
(2) The company's ability to resist risks is poor, and most shareholders lack a sense of responsibility;
(3) Large shareholders hold more equity, which is not conducive to the interests of small shareholders;

(4) The company's trade secrets are easily exposed.

(End of this chapter)