Legal information

Article introduction: The difference between factory demolition and residential demolition is that the factory has a business attribute, and during the demolition, you will receive compensation for business losses due to production suspension, equipment relocation fees, etc. In enterprise demolition, small and medium-sized enterprises can generally obtain six parts of compensation items.

1. Regional compensation price for land use rights

The regional compensation price for the land you occupy must be calculated based on the nature of the occupation and the period of use. In layman's terms, it is land use rights compensation. So how should land use rights be compensated? There are several situations:

(1) Land contract management rights. The land contract management rights derived from the villagers of the village contracting the relevant land on the village's land.

(2) The right to use collective construction land. That is to obtain the collective construction land use right certificate, which may be obtained through auction, one-time buyout, etc.

(3) Methods of transfer and allocation of state-owned land use rights. The qualifications of industrial land obtained through the transfer of state-owned land, or through allocation, are included in the scope of land use rights compensation. However, the lease right is still within the scope of creditor's rights and has no form of property rights, so the lease right is not compensated by land use rights.

2. Replacement of factory buildings to new prices

The price of replacing a factory building to new is how much it costs to build it again after it is reset. There is also the issue of how much new the demolished house was when it was demolished. The objective states that appear in practice include buildings, structures, and facilities. As long as they meet the fixed form of a regular factory building, they should be calculated as a house. The Yingting demolition team learned that in practice, because the structure, width, and height of the houses are different, the compensation prices are also different. Some factories are temporarily built using brick and wood structures, which may not meet the requirement of having walls on all sides. However, if they are used for normal production and operations, in principle, they should be calculated according to the replacement price of the building. Basically, there is an external solid attribute of the factory building, so it can be compensated by replacing the factory building with a new price.

3. Loss expenses due to suspension of production and business

1. Expenses incurred due to the suspension of production and business operations of the enterprise due to demolition. Under normal circumstances, a business license, tax registration, tax records, actual business behavior, etc. must be met to meet the conditions for a normal enterprise factory to carry out production and operation, so as to obtain a one-time suspension of production and business loss compensation. Another issue that needs to be reminded is that in practice, there are many companies with inconsistent registered addresses and actual business addresses. This is not acceptable. Only the registered address and the actual business address must be consistent to satisfy the legal business entity.

2. What kind of compensation should be met for losses caused by suspension of production and business?

(1) Expected profit loss. The expected profit that can be generated in a year is one million. The demolition will cause business interruption and cause three years of production and business suspension losses. In this case, three years of losses may be required.

(2) Losses due to breach of contract. The company and the customer signed a contract worth one million yuan. Due to the failure to deliver goods on time due to demolition, the cost of breach of contract for one million yuan is 50,000 yuan, which must be compensated for the company's losses due to breach of contract.

(3) Financial costs, borrow one million from the bank, and pay interest on financial costs every year. Now that the business has stopped, financial costs have increased cumulatively, so financial costs must also be included in the loss from production and business suspension.

These are possible losses. Ying Ting believes that many people will ask about personnel placement and severance payments. We need to correct this. Personnel placement and severance payments only appear in state-owned enterprises and collectively owned enterprises. Generally, small and medium-sized enterprises and private enterprises do not have them. They are basically included in the losses caused by suspension of production and business.

4. Decoration accessories

Attachments to existing buildings cannot be moved and are subject to replacement costs. In practice, a water pump, transformer, and machinery and equipment are all included in the scope of decoration accessories.

5. Machinery and equipment

Machinery and equipment are divided into movable and immovable. Immovable machines and equipment, like houses, must be replaced with a new price. Movable machines and equipment are compensated for relocation costs.

6. Relocation expenses

It is the relocation costs to be paid for all movable ancillary facilities and equipment.