Current location - Recipe Complete Network - Catering franchise - For-profit and non-profit service industries
For-profit and non-profit service industries

There are significant differences in business purposes, profit distribution and tax policies.

the main goal of for-profit service industry is to pursue economic profits, obtain income by providing goods or services, and use these income for enterprise expansion, shareholder dividends, etc. This kind of service industry competes freely in the market economy environment, and attracts customers by providing high-quality services and efficient operations, thus obtaining more profits. The for-profit service industry has a wide range of business, including catering, retail, entertainment and other fields.

the non-profit service industry takes social welfare as its main goal, and its income is mainly used to maintain the operation of institutions and promote the development of public welfare undertakings, rather than pursuing economic profits. This kind of service industry is usually operated by government departments, social organizations or charities, and its service scope covers many fields such as education, medical care and social welfare. Non-profit service industry plays an important role in providing public services and meeting social needs.

in terms of tax policy, the for-profit service industry needs to pay various taxes and fees according to state regulations, including business tax and income tax. The non-profit service industry usually enjoys certain preferential policies in taxation to encourage it to better serve social welfare undertakings.

In addition, there are differences between for-profit service industry and non-profit service industry in terms of operation mode and management system. For-profit service industry pays more attention to market orientation and economic benefits, while non-profit service industry pays more attention to social benefits and public responsibilities.

To sum up:

The for-profit service industry takes the pursuit of economic profits as its main goal, obtains income by providing goods or services, and competes freely in the market economy environment; The non-profit service industry takes social welfare as its main goal, and its income is mainly used to maintain the operation of institutions and promote the development of public welfare undertakings. There are significant differences between them in business purposes, profit distribution and tax policies, but they both play an important role in their respective fields.

Legal basis:

Article 5 of the Company Law of the People's Republic of China

stipulates:

In conducting business activities, a company must abide by laws and administrative regulations, observe social ethics and business ethics, be honest and trustworthy, accept the supervision of the government and the public, and assume social responsibilities.

Article 2 of the Law of the People's Republic of China on Donation to Public Welfare

stipulates:

This Law is applicable to natural persons, legal persons or other organizations who voluntarily donate property to legally established public welfare social organizations and public welfare non-profit institutions for public welfare.