Comparison of a Company and a Business Enterprise
Business Type Items | Company | Business Enterprise |
---|---|---|
Minimum capital requirement | No minimum requirement, but the capital still needs to be examined and certified by a local CPA and covers at least the incorporation cost (Note 1) | Not required. |
Extent of shareholders/responsible person/partners' liability | Shareholders are liable to the extent of their capital contribution to the company. | The responsible person or partners of the business are liable for any liabilities arising from the business operation. |
Business expansion | A registered company name is approved by the Ministry of Economic Affairs. This name is legally protected and its usage is nationwide. It is advantageous for business expansion. | A registered business name is approved by a local (county or city) government. The name protection and usage are limited. |
Qualification of being a juristic person | A company is qualified as a juristic person. | Not qualified as a juristic person. |
Requirement for accounting books and vouchers. | Must keep complete set of accounting books and accounting records to document its operating results. | Not compulsorily required. The profit and loss is reflected directly in income individually reported by the responsible person or partners. |
Note 1: If the business entity engages in activities that require a special permit or approval, the authorities may set a higher capital requirement.
Source: Department of Investment Services, Ministry of Economic Affairs, R.O.C.