Q：
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What is the main difference between company and firm?
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A：
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The advantages of company organization are limited responsibility for shareholders, convenience of transfer of shares, accessibility to distribute dividends, larger scale to broaden business and more flexibility. In contrast, the disadvantages of firm organization are infinite responsibility for shareholders, incapability to transfer its shares, necessity to distribute the dividends at that fiscal year with limited space to manage, smaller scale, hinderance to broaden business and less flexibility.
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Q：
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Is it necessary for workshops to register their business?
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A：
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In the circumstance of management in sole proprietorship or partnership, instead of a company and running its own business on behalf of individuals, it is allowed to apply for business registration solely, which is referred to as “Trade Name” or “Firm”.
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Q：
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Is it accessible to recruit employees for firms?
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A：
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Yes, it is. The labor health insurance can be set up either.
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Q：
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Is the trade name equivalent to the firm?
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A：
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Yes, the examples of firm name like XX Cooperatives, XX Studio, XX Trade Name are all equivalent to the firm organization.
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Q：
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Is it valid for business registration to establish a firm?
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A：
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It is valid for business registration to establish a firm. The validity of establishment of a company is company registration otherwise. The studio is affiliated as a type of firm, others like eatery, apparel stores.
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FAQ
