Q：
|
What are the main differences between company and firm?
|
A：
|
The advantages of a company include limited liability for shareholders, convenience of transfer of shares, flexible profit distribution planning, and the ability to expand on a large scale, which provides more flexibility. In contrast, the characteristics of a sole proprietorship include unlimited liability for the owner, the inability to transfer ownership without closing the business, the requirement to distribute profits within the fiscal year without any flexibility in planning, and a smaller scale that can limit business growth, resulting in less flexibility.
|
Q：
|
Can a studio register as a business?
|
A：
|
If it is operated as a sole proprietorship or a partnership without establishing a company, and the business is conducted under personal names, it can simply apply for a business registration. This is referred to as a “Trade Name”or “Firm”.
|
Q：
|
Can a firm recruit an employee?
|
A：
|
Yes, and the firm can also help the employee to register labor and health insurance.
|
Q：
|
Does the term “trade name” mean the same as “firm”?
|
|
A：
|
Yes. The names of firms, such as XX Cooperatives, XX Studio, XX Trade Name, all indicate that the established organizational form is a firm.
|
Q：
|
Does establishing a firm mean registering a business?
|
|
A：
|
Yes, establishing a firm involves business registration, while setting up a company requires company registration. A studio is affiliated as a type of firm, and other examples include snack bars and clothing stores.
|
FAQ
