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What are the risks of starting a labor service company?
The legal risks to be borne by the labor dispatch company include the legal risks caused by abnormal termination of the contract, the legal risks that the dispatched company may bear after the dispatched workers cause damage to others and themselves, and the disclosure of business secrets. However, these legal risks can be avoided in advance through contracts.

The risks of operating a labor service company are as follows:

If an enterprise as a legal person is under any of the following circumstances, in addition to investigating the legal person's responsibility, it may impose administrative sanctions and fines on the legal representative, and if the case constitutes a crime, it shall be investigated for criminal responsibility according to law:

1, engaging in illegal business beyond the business scope approved and registered by the registration authority;

2. Concealing the truth from the registration authority or the tax authority or practicing fraud;

3. Withdraw funds or hide property to avoid debts.

A labor service company refers to an enterprise that recruits some workers who have the ability to work and meet the market requirements according to the demand of the labor market, and then sublets or dispatches these workers to other employers to obtain the labor price difference. In fact, labor service companies regard labor as a special asset, and obtain corporate profits through the operation of labor assets.

The registration conditions of a labor service company are:

1, with a registered capital of not less than 2 million yuan;

2. Having fixed business premises and facilities;

3. There is a legal labor dispatch management system;

4. Meet other conditions stipulated by laws and administrative regulations.

I hope the above content can help you. Please consult a professional lawyer if you have any other questions.

Legal basis: Article 83 of the Civil Code of People's Republic of China (PRC).

The investor of a profit-making legal person shall not abuse the rights of the investor to harm the interests of the legal person or other investors; Whoever abuses the rights of the investor and causes losses to the legal person or other investors shall bear civil liability according to law. The investor of a profit-making legal person shall not abuse the independent status of the legal person and the limited liability of the investor to harm the interests of the creditors of the legal person; Whoever abuses the independent status of a legal person and the limited liability of the investor, evades debts, and seriously damages the interests of the creditors of the legal person, shall be jointly and severally liable for the debts of the legal person.