Sole proprietorship enterprise belongs to one of the enterprise types, including limited company, partnership, general partnership and sole proprietorship. An operating entity established in China in accordance with the Law on Solely Owned Enterprises, which is invested by a natural person, all assets are owned by the investor, and the investor assumes unlimited liability for the debts of the enterprise with his personal (or family) property, and does not have legal person status. A sole proprietorship enterprise belongs to one of the enterprise types, including limited company, partnership, general partnership and sole proprietorship. An operating entity established in China in accordance with the Law on Solely Owned Enterprises, which is invested by a natural person, all assets are owned by the investor, and the investor assumes unlimited liability for the debts of the enterprise with his personal (or family) property, and does not have legal person status. Sole proprietorship enterprises are exempt from enterprise income tax, and only individual income tax is levied on the production and operation income obtained by investors, and the collection of individual taxes is divided into two types: audit collection and verification collection. In order to enjoy the preferential treatment better, the method of approved collection is generally adopted. Under what circumstances is it applicable to the establishment of a sole proprietorship enterprise? Applicable scenario for the establishment of a sole proprietorship enterprise: 1, pricing transfer: the company has high profits, and it uses a single company as its business partner. 2. Business transfer: directly transfer the existing business to an independent company and enjoy the double preferential treatment of low tax rate and high support. 3. Wage generation (salary/labor/royalty, etc.): change the income type, from salary income, labor income and royalty income to operating income, thus enjoying low tax rate. (For example: executives, shareholders, freelancers, high-net-worth people, lecturers, industry experts, professional consultants, designers, etc.). The establishment of a sole proprietorship enterprise in Shenzhen has great tax saving advantages. If we can make good use of preferential tax policies and enjoy the approved collection of income tax, it will save a lot of money for enterprises. What are the advantages of establishing a sole proprietorship enterprise? 1, it is easier to create. There is no need to negotiate with others, and the registered capital is small. 2. The fixed cost of operation is low, and the decision-making is independent. All the affairs of the enterprise are decided by the investors, and the business model is adjusted at any time according to market changes. 3. There is no need to pay enterprise income tax.