Municipal institution and municipal enterprise. Municipal Unitary Enterprise

An enterprise is an autonomous business entity that is established and operates on the basis of existing national legislation for the production of goods, the provision of services and the performance of work.

The two main goals of its functioning are the satisfaction of the emerging needs and profit. One of the forms of organization of economic activity is a municipal enterprise. Its main features will be discussed in this article.

Categories of economic entities

Under the Civil Code of the Russian Federation, in fact, there are three large groups of commercial organizations:

1. Economic society, or partnership.
2. Production cooperative.
3. Unitary state or municipal enterprise.

The first group includes the largest number of subcategories:

• Complete society.
• A limited partnership.
• LTD.
• Company with additional responsibility.
• JSC and CJSC.

A cooperative is an association of citizens on a voluntary basis for joint economic activities. Each of its members personally participates in the work and contributes there a share contribution. All participants of this organization bear joint responsibility. This means that the profit is distributed in proportion to the labor contribution. When the production cooperative is liquidated, all the remaining property is distributed among employees according to a similar principle.

State and Municipal Enterprise: Main Features

The last category includes unitary subjects of management. A municipal enterprise is a special type of commercial organization in which ownership of property is not assigned to an individual. Therefore, such a subject of economy is called unitary. His property is not divided into shares and shares, including between people who work for him. Under the Civil Code of the Russian Federation, the municipal enterprise is always unitary. At the same time, such a form is typical only for similar economic entities created by state or local government bodies.

Non-Profit Organizations

In addition to the listed economic entities aimed at profit, voluntary civil associations can be created under Russian legislation. The state can also establish them. There are the following main types of non-profit associations:

1. Consumer cooperative.
2. Religious or social organization.
3. Fund.
4. The institution, including the municipal one.
5. Association or union.

Thus, a municipal institution and a municipal enterprise are the two main ways by which a state can carry out economic activities. On whether it receives a profit, with what purposes it was created, depends on how to properly call it.

Forms of municipal enterprises

All unitary subjects of economics are divided into two types. All state institutions can be attributed to one of them.

The first includes enterprises with the right of economic management. This means that he has a legitimate opportunity to own, use and dispose of property within the limits established by law. This state of affairs is more preferable, since in this case it is possible to independently determine its strategy and establish its goals and daily tasks.

The municipal unitary enterprise with the right of operative management much more depends on the state. It can own, use and dispose of all property, but only within predetermined limits. The state body determines its goals and objectives, which can not be changed. This species has much less autonomy in management.

Process of creation and work

The municipal unitary enterprise starts its activity on the decision of the state body. The government of the Russian Federation can also create a state enterprise on the basis of property in its ownership. The constituent document is the charter. The state or municipal body is responsible for the insufficiency of the property of the enterprise created by it. The head is fully accountable to the Government of the Russian Federation through its authorized bodies.

Basic Provisions

According to Article 52 of the Civil Code of the Russian Federation, a unitary enterprise is a business entity that is not endowed with the right of ownership with the property that belongs to it. Its charter must necessarily include two points:

• The subject and purpose of the activity.
• The size of the statutory fund and the sources of its financing.

The firm name must necessarily contain an indication of state property. For obligations, a unitary enterprise is liable with all property, but can not act as a pledge or become insolvent as a result of the bankruptcy of its owner. In Russia there is a special Federal Law, in which such economic entities are described.

Operational and complete control capabilities

Any municipal enterprise is created on the basis of the decision of the local state body. It is they who approve of its charter. The size of the fund of a unitary enterprise with the right of economic management should be fully financed before its registration. If the size of net assets at the end of the year is less than the statutory fund, the authorized body is obliged to track this situation and reduce it. Notification of a change in the value of the fund is sent to all creditors, who may require the company to fulfill its obligations ahead of schedule. The owner is not liable for obligations, except for the cases described in Article 56 of the Civil Code of the Russian Federation.

Unitary enterprises with the right of operative management create under the decision of the government. Federal property is assigned to them in the quality of their property. The constituent document is also a charter. The main difference is that if the property is insufficient, the state is responsible for its obligations. Accordingly, reorganization and liquidation are made only by the decision of the Government of the Russian Federation.