Definition: Unincorporated enterprise

Category: SNA

An unincorporated enterprise represents the production activity of a government unit, NPISH or household that cannot be treated as the production activity of a quasi-corporation (SNA 2008, § 5.1).

An unincorporated enterprise is a producer unit which is not incorporated as a legal entity separate from the owner (household, government or foreign resident); the fixed and other assets used in unincorporated enterprises do not belong to the enterprises but to their owners, the enterprises as such cannot engage in transactions with other economic units nor can they enter into contractual relationships with other units nor incur liabilities on their own behalf; in addition, their owners are personally liable, without limit, for any debts or obligations incurred in the course of production (SNA 1993, § 4.140 and 4.141). http://ec.europa.eu/eurostat/ramon/statmanuals/files/SNA2008.pdf United Nations, System of National Accounts (SNA) 1993, United Nations, New York, 1993