Discussing about legal status of business households and transforming business households into enterprises

Abstract

Transferring the private enterprise to a company is a good policy which is beneficial not only for the enterprises but also for the state budget as this type of business has very high potential tax sources. Within the scope of this article, the author points out some characteristics of the private enterprises, analyze their advantages compared with those of the companies and vice versa. Besides, the author lists the contribution as well as some disadvantages of this type of business to the economy; simultaneously, analyzes some legal issues regarding such a transference process. Based on this, some recommendations are mentioned to improve the effectiveness of transferring the private enterprise to a company.

Key words: private enterprise, transferring the private enterprise to a company, legal point