Partnership investment certificate

What is a partnership?

A partnership enterprise refers to a partnership established by a partner in China in accordance with the Partnership Enterprise Law of the People's Republic of China, which jointly establishes a partnership agreement, jointly contributes, operates a partnership, shares revenues, shares risks, and assumes unlimited joint liability for partnership debts. Sexual organization. If you want to set up a partnership, you must have more than two partners under the Partnership Enterprise Law of the People's Republic of China. The law does not have minimum requirements for the registered capital of the partnership enterprise, nor does it require the mandatory capital verification by the statutory body. However, the partner is required to fulfill the capital contribution obligation according to the mode of contribution, the amount and the time limit for payment of the capital contribution agreed upon in the partnership agreement. Partners can contribute in currency, in kind, land use rights, intellectual property rights, other property rights and services. In case of capital contribution, the written documents recognized by all partners shall be stated or issued in the partnership agreement; if the entity is funded, the ownership of the physical property or the certificate of use for the investment of the partnership enterprise shall be issued; if the land use right is contributed, A certificate of land use right shall be issued; if the capital is invested in intellectual property rights, the ownership or use certificate of the intellectual property right shall be issued; if the certificate of ownership and use rights cannot be obtained, there shall be a written file recognized by all the partners; if the labor service is funded, it shall be in the partnership agreement. A written file identified by all partners shall be issued or issued. The corporate debt is first compensated by the property of the partnership enterprise. When the compensation is insufficient, the partner assumes unlimited joint liability with his property. Although there is no minimum capital requirement for the establishment of a partnership, the risk is greater because the partners have unlimited joint liability for the partnership debt. If you are starting a partnership, please choose a partner carefully. Compared with other entrepreneurial methods, it has the following characteristics:

Unlimited liability

Entrepreneurs who choose to set up a partnership enterprise have unlimited liability for corporate debt with their personal property, and the company’s investors only bear limited liability for the company with their capital contribution. Li Yu has a loss, and the personal property of the entrepreneur who chooses to set up the company is not subject to this. The effect is that the personal property of the entrepreneur who chooses to establish a partnership needs to pay off the debt.

Joint liability

In the event of a loss, the entrepreneur who chooses to establish a partnership must use personal property to assume liability, and is responsible for the entire debt of the partnership, not in accordance with the partnership share. Once the other partners are insolvent, the investor will be responsible for the external debt of all the partnerships.

No minimum registered capital limit

The establishment of a company has the minimum registered capital requirement, and the establishment of a partnership does not have a minimum registered capital limit, so the cost of establishment is lower. You can use labor as a contribution

Neither a limited liability company nor a sole proprietorship can use labor as a capital contribution. The partners of the established partnership have unanimously agreed that the partners can use the labor as a contribution. The investment method is more flexible.

Investors must be more than two

A partnership invested by two or more partners can usually supplement the shortage of individual investors' funds, form a larger scale, and seek cooperation in technology and manpower, but the side effect is the single partner's control over the partnership. Weakened and the uncertainty factor increased.

Fixed business place

On the one hand, it guarantees the production and operation of individual proprietorship enterprises, on the other hand, it increases the establishment and operation costs. Advantages : Funds and credit are guaranteed, more people, financial and material resources can be gathered, and the capital contribution method is flexible. Disadvantages : less personal property and life security, weaker control of enterprises, higher establishment and operation costs