The concept of organizational and legal forms. Brief description of the organizational and legal forms of the enterprise. OPF of business entities that are legal entities-non-profit organizations
Organizational and legal form is a form of organization of entrepreneurial activity, enshrined in a legal manner. It determines responsibility for obligations, the right to transact on behalf of the enterprise, management structure and other features economic activity enterprises. The organizational system used in Russia legal forms reflected in the Civil Code of the Russian Federation, as well as in the regulations arising from it. It includes two forms of entrepreneurship without education legal entity, seven types of commercial organizations and seven types non-profit organizations.
Let us consider in more detail the organizational and legal forms of legal entities that are commercial organizations. Entity - an organization that has separate property in ownership, economic management and operational management, is liable for its obligations with this property and can, in its own name, acquire and exercise property rights and bear obligations.
Commercial are organizations that pursue profit as the main goal of their activities.
Economic partnership is an association of persons directly involved in the activities of the partnership, with the share capital divided into shares of the founders. The founders of a partnership can be participants in only one partnership.
Full A partnership is recognized, the participants of which (general partners) are engaged in entrepreneurial activities on behalf of the partnership. If there is insufficient property of the partnership to pay off its debts, creditors have the right to demand satisfaction of claims from the personal property of any of its participants. Therefore, the activities of the partnership are based on personal trust relationships of all participants, the loss of which entails the termination of the activities of the partnership. The profits and losses of the partnership are distributed among its participants in proportion to their shares in the share capital.
Partnership of Faith (limited partnership) - a type of general partnership, an intermediate form between a general partnership and a company with limited liability. It consists of two categories of participants:
- full comrades carry out entrepreneurial activity on behalf of the partnership and bear full and joint liability for obligations with all owned property;
- investors make contributions to the property of the partnership and bear the risk of losses associated with the activities of the partnership to the extent of the amounts of contributions to the property.
Economical society Unlike a partnership, it is an association of capital. The founders are not required to directly participate in the affairs of the company; members of the company can simultaneously participate with property contributions in several companies.
Limited Liability Company (LLC) - an organization created by agreement between legal entities and citizens by combining their contributions for the purpose of carrying out economic activities. Mandatory personal participation of members in the affairs of the LLC is not required. Participants in an LLC are not liable for its obligations and bear the risk of losses associated with the activities of the LLC to the extent of the value of their contributions. The number of LLC participants should not be more than 50.
Additional liability company (ALC) is a type of LLC, therefore all general LLC rules apply to it. The peculiarity of an ALC is that if the property of a given company is insufficient to satisfy the claims of its creditors, the participants of the company can be held property liable, and jointly and severally with each other.
Joint Stock Company (JSC) – a commercial organization whose authorized capital is divided into a certain number of shares; The participants of the joint-stock company are not liable for its obligations and bear the risk of losses associated with the activities of the company, within the limits of the value of the shares they own. Open Joint-Stock Company(JSC) - a company whose participants can alienate their shares without the consent of other members of the company. Such a company has the right to conduct an open subscription for shares issued by it in cases established by the Charter. Closed Joint Stock Company (CJSC) – a company whose shares are distributed only among its founders or other specified circle of persons. A closed joint stock company does not have the right to conduct an open subscription for its shares or otherwise offer them to an unlimited number of persons.
Production cooperative (artel) (PC) – a voluntary association of citizens for joint activities, based on their personal labor or other participation and the association of its members with property shares. The profit of the cooperative is distributed among its members in accordance with their labor participation, unless a different procedure is provided for by the charter of the PC.
Unitary enterprise - a commercial organization that is not vested with the right of ownership of the property assigned to it. Property is indivisible and cannot be distributed among deposits (shares, shares), including between employees of the enterprise. It is respectively in state or municipal ownership and is assigned to a unitary enterprise only on a limited property right (economic management or operational management).
Unitary enterprise on the right of economic management - an enterprise that is created by decision of a state body or local government. Property transferred to a unitary enterprise is credited to its balance sheet, and the owner does not have ownership and use rights in relation to this property.
Unitary enterprise with the right of operational management is a federal government enterprise that is created by decision of the Government of the Russian Federation on the basis of property that is federally owned. State-owned enterprises do not have the right to dispose of movable and immovable property without special permission from the owner. The Russian Federation is responsible for the obligations of a state-owned enterprise.
There is a question that sometimes baffles company owners. This is the legal form of the company. Although, in a good way, there is nothing complicated in OPF.
What is OPF
The organizational and legal form (OLF), or as it is sometimes called, the “form of doing business,” is a method of ownership and use of property (for some, disposal) established by the legislation of the country, and, based on this, the purpose of creating and conducting business.
Since legal entities can be divided into commercial and non-commercial, the purposes here may differ as follows:
- Making a profit - for commercial;
- Public interests, education, enlightenment, etc. - for non-profits.
Commercial legal entities, in turn, are divided into:
- Business partnerships and societies - with the right to own, use and dispose of property;
- Unitary enterprises - with the right of economic management or operational management of property. They cannot manage it.
Let's look at it with an example. The most common case of commercial legal. persons - LLC, or limited liability company:
- Society is a type of commercial organization, namely a business entity.
- Limited liability means that the company is liable for its obligations within the limits of its property and authorized capital. True, no one has canceled the subsidiary liability of its controlling persons.
Types of organizational and legal forms
It’s easier to summarize everything in a table here:
| Commercial organizations | |
| Partnerships | General partnerships |
| Partnerships of faith | |
| Business societies | Limited Liability Companies |
| Non-public joint stock companies | |
| Public joint stock companies | |
| Unitary enterprises | Unitary enterprises based on the right of economic management |
| Unitary enterprises based on the right of operational management | |
| Others | Producer cooperatives |
| Peasant (farm) enterprises (from January 1, 2010) | |
| Business partnerships | |
| Non-profit organizations | |
| Consumer cooperatives | |
| Public associations | Public organizations |
| Social movements | |
| Public amateur bodies | |
| Political parties | |
| Funds | Charitable foundations |
| Public funds | |
| Institutions | Federal government agency |
| Federal state autonomous institution | |
| Federal state budgetary institution | |
| State corporations | |
| Nonprofit partnerships | |
| Autonomous non-profit organizations | |
| Communities of indigenous peoples | |
| Cossack societies | |
| Associations of legal entities (associations and unions) | |
| Peasant (farm) associations | |
| Territorial public self-governments | |
| Property Owners Associations | |
| Gardening, gardening or dacha non-profit partnerships | |
| Religious organizations | |
| Legal entities | Law Office |
| Law office | |
| Lawyer's office | |
| Law firm | |
| Law Firm | |
| Notary offices | State notary offices |
| Private notary offices | |
| Without forming a legal entity | |
| Mutual funds | |
| Simple partnerships | |
| Individual entrepreneurs | |
Non-profit organizations are created for other purposes and do not pursue profit as the main goal of their activities. Such goals usually include: social, cultural, educational, spiritual, charitable and other types of goals. Non-profit organizations have the right to engage in entrepreneurial activities only if these activities are aimed at achieving the goals of the organization.
Properties of business partnerships and companies
Business partnerships and companies are recognized as corporate commercial organizations with authorized (share) capital divided into shares (contributions) of founders (participants). Property created through the contributions of founders (participants), as well as produced and acquired by a business partnership or company in the course of its activities, belongs by right of ownership to the business partnership or company. As a rule, the scope of rights and responsibilities of the organization's participants is determined in proportion to their shares in the authorized capital.
In addition to the general features presented above, there are also fundamental differences between business partnerships and companies.
Responsibility of participants . The participants of the partnership are liable for its debts with all their property, which may be subject to foreclosure. The participants of the company are not liable for the debts of the company and are liable for its obligations within the limits of their shares.
List of participants . Only individual entrepreneurs or commercial organizations. Participants in a business company can be both organizations and individuals.
Changing the composition of participants . IN business entities ah, this is much easier. Any participant can leave the company or sell his share, while the company continues to function.
To leave the partnership, you must declare this at least 6 months before leaving. In case of withdrawal, the participant is paid the value of his share in the property of the partnership, unless otherwise provided by the constituent agreement. If any of the participants leaves, the partnership ceases to operate, unless otherwise provided by the constituent agreement or agreement of the remaining participants.
Organization of activities . The affairs of the partnership are managed by the participants themselves. The organization of the company's activities is carried out through its management bodies. For a company, the main constituent document is the charter; for a partnership, it is the contract.
Types of business partnerships
The types of business partnerships include: general partnership and limited partnership.
General partnership- a partnership whose participants (general partners), in accordance with the agreement concluded between them, on behalf of the partnership, are engaged in entrepreneurial activities and are liable for the obligations of the organization with the property belonging to them.
Please note that a participant in a general partnership who is not its founder is liable equally with other participants for obligations that arose before his entry into the partnership. A participant who has left the partnership is liable for the obligations of the partnership that arose before the moment of his withdrawal, equally with the remaining participants, for two years from the date of approval of the report on the activities of the partnership for the year in which he left the partnership.
To create a general partnership, a minimum of two partners is required, each of whom can be a member of only one partnership. Profits allocated for dividends are distributed among general partners in proportion to their shares in the share capital.
We can safely say that participation in a general partnership implies too high a responsibility for its participants. Any wrong decision can lead to serious consequences, even if you have already left the team.
Partnership of Faith(limited partnership) - a partnership in which, along with the participants who carry out business activities on behalf of the partnership and are liable for the obligations of the partnership with their property (general partners), there are one or more participants - investors (limited partners) who bear the risk of losses associated with the activities partnerships, within the limits of the amounts of contributions made by them and do not take part in the partnership’s business activities.
As we noted earlier, only individual entrepreneurs or commercial organizations can be general partners. While investors can be both legal entities and citizens. To create a limited partnership, at least one general partner and one investor are required, their maximum number is not limited.
Profits allocated for dividends are distributed among general partners and investors in proportion to their shares in the share capital. First of all, dividends are paid to investors, but the amount of dividend per unit of contribution for general partners cannot be higher than for investors.
Thus, business partnerships can attract a significant amount of capital, since the composition of its participants is unlimited. Joint and several subsidiary liability of its participants is an advantage for creditors, but creates high risks of doing business. Managing a general or limited partnership requires high level trust and agreement on basic issues, otherwise managing the organization will be difficult.
Currently, business partnerships are used extremely rarely. The principles of creating and managing business partnerships are described in the Civil Code of the Russian Federation, articles 66-86.
Types of business entities
Business societies are one of the main forms of business organization in Russia. These include: limited liability company, additional liability company and joint stock company.
Limited Liability Company(LLC) is a legal entity established by one or more persons, the authorized capital of which is divided into certain shares (the size of which is established by the constituent documents). LLC participants bear the risk of losses only to the extent of the value of their contributions.
In practice, LLC is the most popular form of business organization in Russia, largely because it avoids the main disadvantages of partnerships. Firstly, liability for the organization’s obligations is limited by the size of its authorized capital. Secondly, the process of leaving society is simpler. In this case, the former participant can not only sell his share, but also demand payment of the value of part of the property corresponding to his share in the authorized capital, if this is provided for by the charter. Accordingly, if the value of the LLC’s property has increased, then the participant leaving it will receive not only his initial contribution, but also an increased share in the property.
In addition, an LLC is characterized by the fact that operational management in the company (as opposed to partnerships) is transferred to the executive body, which is appointed by the founders either from among themselves or from among other persons. The participants of the company retain the rights to strategic management society. These measures help reduce differences in views when managing an organization.
Limited Liability Companies are regulated by Federal Law No. 14 and Articles 87-94 of the Civil Code of the Russian Federation. In one of the previous articles, we looked at one of the forms of business management without forming a legal entity. In our opinion, an individual entrepreneur, along with an LLC, is one of the best forms for starting a business.
Additional liability company(OAO) is a company whose authorized capital is divided into shares determined by the constituent documents. Participants in an ALC bear subsidiary (full) liability for its obligations with their property in the same multiple of the value of their contributions to the authorized capital. For example, the authorized capital of an ALC is 50 thousand rubles. The charter stipulates that the company bears additional liability in the amount of five times. This means that if the company’s property is insufficient, creditors can receive up to 250 thousand rubles from participants.
In practice, companies with additional liability were rare, so they were abolished in 2014. The rules of the Civil Code regulating the activities of LLCs apply to previously created ALCs, with the exception of liability for obligations.
Joint-Stock Company(JSC) is a company whose authorized capital is divided into a certain number of shares; Participants in a joint stock company (shareholders) are not liable for its obligations and bear the risk of losses associated with the activities of the company within the limits of the value of the shares they own.
It is worth noting that previously it was customary to divide joint stock companies into open and closed. However, since 2014 new designations have been introduced: public joint stock company(PJSC) and non-public joint stock company(AO).
A public joint-stock company is a joint-stock company whose shares can be freely traded on the market. A non-public joint-stock company is a joint-stock company, the shares of which are distributed only among the founders or a predetermined circle of persons. In addition to the above, there are several other differences between PJSC and JSC.
- Authorized capital . The minimum authorized capital for a PJSC is higher than for a JSC and is 100 thousand rubles. For a non-public company, its size is 10 thousand rubles.
- Purchase of shares by shareholders . JSC shareholders have the right of pre-emption to purchase shares of the company from other shareholders. PJSC shareholders acquire new shares on a general basis.
- Publication of reports . A public joint stock company is required to publish annual reports on the company's official resources. The accuracy of the reporting is checked by auditing companies. This requirement is necessary for investors to understand the financial condition of the business. A non-public joint stock company, as a rule, may not disclose its own financial statements.
The activities of joint stock companies are one of the most strictly regulated by law. Among the basic laws are Articles 96-104 of the Civil Code of the Russian Federation, as well as Federal Law No. 208 “On Joint-Stock Companies”. In one of the following articles we will compare joint stock companies and limited liability companies in more detail.
So, we see that business companies provide entrepreneurs with a wider range of opportunities not only in raising funds, but also in managing the company. Joint-stock companies and limited liability companies allow company founders and investors to limit the amount of their losses in case of problems at the company, while still providing ample opportunities to generate income.
Production cooperatives and unitary enterprises
Production cooperative(artel) is a voluntary association of citizens on the basis of membership for joint production or other economic activities based on personal labor participation and the association of its members with property shares. The charter of a production cooperative may also provide for the participation of legal entities in its activities. The minimum number of participants to create a cooperative is five.
Members of a production cooperative bear subsidiary liability and are divided into those who accept and those who do not take personal labor participation in the activities of the PC. The profit of the cooperative is distributed among its members in accordance with their labor participation and contributions to the cooperative's mutual fund. The property remaining after the liquidation of the cooperative and the satisfaction of the claims of its creditors are distributed in the same manner.
The minimum size of a production cooperative's mutual fund is not established by law. However, members of the cooperative are required to pay at least 10% of their share contributions before state registration cooperative, and the remaining part - within one year from the date of registration. Contributions to a mutual fund can be made in cash, securities, other property, or intangible assets.
One of the main advantages production cooperatives is tax optimization: you can switch from a general to a simplified taxation system for any number of PC members, as well as reduce the amount of insurance premiums paid and increase take-home pay for employees. Other advantages are: an unlimited number of members, equal rights in management, etc.
But there are also disadvantages, among them: subsidiary liability of PC members, pooling of labor contributions rather than capital, which can create problems in determining the real contribution of each participant, especially for a complex commercial structure.
Issues of the legal status and features of PCs are regulated by Article 106 of the Civil Code of the Russian Federation, as well as Federal Law No. 41-FZ “On Production Cooperatives”.
Unitary enterprise- a commercial organization that is not vested with the right of ownership of the property assigned to the owner. The property of a unitary enterprise is indivisible and cannot be distributed by contribution (shares, shares), including among employees of the enterprise. In the form of unitary enterprises, only state and municipal enterprises can be created, which are liable for their obligations with all the property they own, but are not liable for the obligations of the owner of his property.
State (state) enterprise - a unitary enterprise based on the right of operational management and created on the basis of property that is in federal (state) ownership. A state-owned enterprise is created by decision of the Government Russian Federation.
Municipal enterprise - a unitary enterprise based on the right of economic management and created on the basis of state or municipal property. It is created by decision of an authorized state body or local government body.
The right of economic management is the right of an enterprise to own, use and dispose of the owner’s property within the limits established by law or other legal acts. The right of operational management is the right of an enterprise to own, use and dispose of the owner’s property assigned to it within the limits established by law, in accordance with the goals of its activities, the owner’s tasks and the purpose of the property.
The right of economic management is broader than the right of operational management, i.e. An enterprise operating on the basis of the right of economic management has greater independence in management. The legal status of unitary enterprises is determined by Articles 113-114 of the Civil Code of the Russian Federation and Federal Law No. 161-FZ “On State and Municipal Unitary Enterprises”.
This concludes our consideration of the forms of commercial organizations in Russia. Next, we’ll talk about non-profit organizations and doing business without forming a legal entity.
Non-profit organizations
As was said earlier, non-profit organizations, firstly, do not pursue profit as the main goal of their activities. And, secondly, they do not distribute profits (if they were received) between the participants. There are quite a few different forms of NPOs in Russia; let’s look at the main ones.
Consumer cooperative- a voluntary association of citizens and legal entities on the basis of membership in order to satisfy the material and other needs of the participants, carried out by combining its members with property shares. Provides for two types of membership: cooperative member (with voting rights); associate member (has the right to vote only in certain cases provided for by law).
Fund- an organization that does not have membership, established by citizens and (or) legal entities on the basis of voluntary property contributions, pursuing social, charitable, cultural, educational or other socially beneficial goals. Has the right to engage in entrepreneurial activities to achieve their goals (including through the creation of business companies and participation in them).
Establishment- an organization created by the owner to carry out managerial, socio-cultural or other functions of a non-profit nature and financed by him in whole or in part. This is the only type of non-profit organization that owns property with the right of operational management.
Association (union)– a voluntary association of legal entities created for the purpose of coordinating business activities and protecting their property interests. Members of the association retain their independence and have the right to join other associations.
There are other types public organizations: public and charity organisations, non-commercial partnership, religious organizations etc. All these organizations are created either to achieve “lofty” goals, or to protect and coordinate the activities of citizens and organizations.
A complete list of non-profit organizations is presented in Art. 123 of the Civil Code of the Russian Federation.
Business without legal entity
There are two types of entrepreneurial activity without forming a legal entity: individual entrepreneur and simple partnership.
Individual entrepreneur(IP) — individual registered in accordance with the procedure established by law and carrying out entrepreneurial activities without forming a legal entity, having at the same time many of the rights of legal entities. An individual entrepreneur has a lot of advantages, especially for beginning entrepreneurs: the procedure for registering an individual entrepreneur is faster and simpler, it is possible to keep records in a simplified form, liability and fines are much lower, and much more. We discussed the pros and cons of individual entrepreneurs in more detail in previous articles.
Simple partnership is a form of activity carried out by persons who undertake to act together without creating a legal entity to achieve a specific goal that does not contradict the law. Only commercial companies and individual entrepreneurs can be parties to a partnership.
In order to carry out joint activities, partners make contributions in the form of: property, property rights, Money, valuable papers; skills, knowledge, business connections, business reputation, etc. The size and type of contribution made by each partner is determined by the specific goals of the joint activity, the capabilities of each partner and their agreements among themselves.
A simple partnership, with all the complexity of its application, is a unique tool that allows not only to unite several companies with the goal of achieving a joint result, but also to have a fairly flexible approach to regulation tax consequences activities of each of the comrades. This type of organizational and legal form is regulated by Chapter 55 of the Civil Code of the Russian Federation.
Thus, we have considered all organizational and legal forms of enterprises in Russia. They differ in the purposes of creation, responsibility for obligations, opportunities for attracting investments, etc. Below is a summary table for all types of organizations in Russia. And in one of the following articles we will talk about foreign forms of doing business.
Table of organizational and legal forms of enterprises
Useful resources:
Do you know what a corporate name of an organization is?
Few people understand the correct legislation, including in the field of corporate law, and therefore many have problems. The current Federal Law dated 02/08/1998 N 14-FZ (as amended on 06/29/2015) “On Limited Liability Companies” in Article 4 (Company name and location) defines only the following criteria for the organization’s company name:
1st: The company must have a full and has the right to have an abbreviated corporate name in Russian.
2nd: The Company also has the right to have a full and (or) abbreviated corporate name in the languages of the peoples of the Russian Federation and (or) foreign languages.
3rd: The full corporate name of the company in Russian must contain the full name of the company and the words “limited liability”.
4th: The abbreviated corporate name of the company in Russian must contain the full or abbreviated name of the company and the words “limited liability” or the abbreviation LLC.
5th: The corporate name of the company in Russian and in the languages of the peoples of the Russian Federation may contain foreign language borrowings in Russian transcription or in transcriptions of the languages of the peoples of the Russian Federation, with the exception of terms and abbreviations that reflect the organizational and legal form of the company.
It follows that:
A) the company must have: a full company name;
b) the company must contain: the full name of the company and the words “limited liability”;
V) The company has the right to have: an abbreviated company name;
G) the company must contain: the abbreviated name of the company and the words “limited liability” or the abbreviation LLC.
Therefore, the corporate name of the company should look like in the following way, but not as we are all accustomed to (Romashka LLC or Romashka Limited Liability Company):
Example of the full name of the company:
Chamomile Limited.
Example of an abbreviated company name:
"Romashka Limited Liability" or "Romashka LLC".
According to paragraph 4 of Art. 54 Civil Code RF, we quote:
A legal entity that is commercial organization, must have a company name.
Requirements for a company name are established by this Code and other laws. Rights to a company name are determined in accordance with the rules of Section VII of this Code.
As for the rules of Section VII of the Civil Code of the Russian Federation, it is specified here by subparagraph 13 of paragraph 1 of Article 1225 (Protected results of intellectual activity and means of individualization), we quote:
1. The results of intellectual activity and equivalent means of individualization of legal entities, goods, works, services and enterprises that are granted legal protection ( intellectual property), are:
…
13) brand names;
…
Agree that at least a strange definition was given by the legislator when formulating the company name of the organization, namely, the concept of a company name is not fully defined. In addition, if we continue to analyze the current legislation, then most of the existing LLCs can be officially closed or funds can be collected from them for duplicating (using) the company name. After all, this is actually stated in paragraph 6 of Article 1252 of the Civil Code of the Russian Federation, we quote:
6. If various means of individualization (company name, trademark, service mark, commercial designation) turn out to be identical or confusingly similar and, as a result of such identity or similarity, consumers and (or) counterparties may be misled, the means of individualization shall take precedence an exclusive right to which arose earlier, or in cases of establishing convention or exhibition priority, a means of individualization that has an earlier priority.
If a means of individualization and an industrial design turn out to be identical or confusingly similar and, as a result of such identity or similarity, consumers and (or) counterparties may be misled, the means of individualization or industrial design in respect of which the exclusive right arose earlier, or in in cases of establishing a convention, exhibition or other priority, a means of individualization or an industrial design in respect of which an earlier priority has been established.
The holder of such an exclusive right, in the manner established by this Code, may demand invalidation of the provision of legal protection trademark, service mark, invalidation of a patent for an industrial design, or a complete or partial ban on the use of a company name or commercial designation.
For the purposes of this paragraph, a partial ban on use means:
in relation to a company name, a ban on its use in certain types of activities;
in relation to a commercial designation, a ban on its use within a certain territory and (or) in certain types of activities.
In this regard, it can be assumed or even argued that when drafting bills:
First- people who do not know jurisprudence are involved;
Second— grammar, vocabulary, phonetics and other rules of the Russian language are never taken into account by anyone, i.e. the bill does not pass the scrutiny of linguists.
Do you know what the organizational and legal form of an organization is?
We are accustomed to the fact that when registering an organization, they are required to correctly indicate the organizational and legal form of the organization, but no one really understands that in the current legislation of the Russian Federation you rarely find a clear description of what the organizational and legal form of an organization is, and this has been written about a little higher in this article.
To make it more clear to everyone what we are trying to talk about here, we will give an example from open sources, namely, we will give definitions:
Organizational and legal form economic entity - a form of economic entity recognized by the legislation of a particular country, fixing the method of securing and using property by the economic entity and its consequences arising from this legal status and activity goals.
Term(from lat. terminus- limit, boundary) is a word or phrase that is the name of a certain concept of some field of science, technology, art, and so on.
Abbreviations(Italian abbreviation from lat. brevis- short) are divided into compound words and initial abbreviations. Compound word is a word made up of abbreviated initial elements (morphemes) of a phrase. Initial types of compound words or acronyms- these are words formed by adding the initial letters of words or initial sounds, in turn divided into letter abbreviations, sound And letter-sound.
Letter abbreviation- composed of the alphabetical names of the initial letters of the words that form the original phrase.
Based on the above circumstances, it turns out that the legal form of the organization is also not provided for by the legislator, i.e. not determined. Consequently, as they say: “the topic is not fully disclosed.”
As for the Federal Law of December 26, 1995 N 208-FZ (as amended on June 29, 2015) “On Joint Stock Companies,” everything is in order here, we quote:
1.The company must have a full and has the right to have an abbreviated corporate name in Russian. The Company also has the right to have a full and (or) abbreviated corporate name in the languages of the peoples of the Russian Federation and (or) foreign languages.
Full company name of the company in Russian must contain the full name of the company and an indication of its organizational and legal form is a joint stock company , and the full corporate name of the public company in Russian is also an indication that the company is public. The abbreviated corporate name of a company in Russian must contain the full or abbreviated name of the company and the words “joint-stock company” or the abbreviation “AO”, and the abbreviated corporate name of a public company in Russian must contain the full or abbreviated name of the public company and the words “public joint-stock company” or abbreviation "PAO".
By the way, do you know what “location” and “location” are?
In what cases is “location” used separately, and when is it used together (“location”)? And is this right?
Location- a place where someone or something is located;
Location- a place where someone or something was found.
If I was wrong about the description of the terminology “location” and “location”, then I am ready to post an official refutation of what was written if it is officially provided by the Federal State budgetary institution Sciences Institute of Linguistics of the Russian Academy of Sciences.
An entrepreneur can conduct two types of activities – commercial and non-commercial. Maintaining commercial activities pursues the main goal of generating income. Non-profit activities have many purposes, the profit from which does not fall under the category of income.
Registration of commercial enterprises primarily involves interaction with tax authorities and social services, payments to which are made from income.
There are several organizational and legal forms (OLF) of commercial enterprises, the registration of which will allow the entrepreneur to conduct a completely legal business and be protected at the legislative level.
These are individual entrepreneurship (IP), limited liability company (LLC), open and closed joint-stock companies (OJSC, CJSC).
Individual entrepreneur
An individual entrepreneur is the most common and simplest private enterprise, which can be registered by any legally competent adult citizen of the Russian Federation. In exceptional cases stipulated by law, a teenager who has reached the age of sixteen can register an individual entrepreneur. Registration of an individual entrepreneur occurs without the formation of a legal entity.
The advantages of individual entrepreneurs include simplified accounting and no need for a legal address. To register an individual entrepreneur, a Charter and authorized capital are not required.
The disadvantage of an individual entrepreneur is his liability to creditors with all his physical property.
Limited Liability Company
One individual and a group of founders can register an LLC. To register an LLC, it is necessary to draw up a Charter, an authorized capital, which cannot be less than 10,000 rubles, and a legal address, which cannot coincide with the registration address, but may not coincide with the address of the location of the actual production.
LLC participants are liable within the limits of their own share of the authorized capital, which terminates with the liquidation of the enterprise.
Joint stock companies
To register joint-stock companies, there are regulations on the size of the authorized capital, which is between the participants of the joint-stock company through shares. There are also regulations for the number of shareholders. In a closed joint-stock company, the number of participants cannot exceed 50 people. Otherwise, there is a need to change the type of closed to open joint stock company or transform it into an LLC. Registration is similar to an LLC, only the registration of a JSC is supplemented by a clause on the issue of the initial block of shares.
Both LLC and JSC are registered to form a legal entity and can be liquidated or reorganized in accordance with the law. With regard to individual entrepreneurs, only termination of registration is possible; payments to the individual entrepreneur on debts are required until they are fully repaid.