A: The Scout Law Online Consultation will answer your question.
A company refers to an organization established for profit, engaging in business activities or for a certain purpose. The general requirement is to be established in accordance with the law, for profit, based on the investment behavior of shareholders, as an independent legal person.
Elements of establishing a company:
1, legally established (required)
The company is a legal person engaged in business activities, and the legal person qualification and business qualification need to be recognized by the state, meet the conditions prescribed by law, perform the procedures prescribed by law, and obtain business licenses and other documents issued by relevant state organs;
2, for the purpose of making profits
The purpose of shareholders' contribution to form a company is to obtain profits through the company's business activities. Profitability has become an important element of the company, which is different from non-profit-making public welfare legal persons, administrative state organs and non-commercial companies. A company whose purpose and main activity is to engage in administrative management should not be called a company because it is not a company in the strict sense.
3. It is based on the investment behavior of shareholders.
It is established by shareholders' investment behavior, and the right line created by shareholders' investment behavior is equity. Equity is an independent special right, which is different from real rights such as management rights and creditor's rights.
4. Independent legal person
A company must have independent property as the basis of its business activities and the premise of bearing civil liability. Article 3 of China's Company Law stipulates: "Limited liability companies and joint stock limited companies are enterprise legal persons." A company as a legal person must meet the conditions stipulated in Article 37 of the General Principles of Civil Law.