Types of Legal Entities

All types of legal entities are divided into commercial organizations and non-commercial.

Commercial organizations set the main goal of the activity to profit from the results of work. Non-profit organizations do not pursue profit-making objectives or distribute profit among participants. The concept and types of legal entities are determined precisely by their goals.

Commercial organizations under the Civil Code of the Russian Federation can be created only in the organizational forms envisaged by them. Such forms are economic societies and partnerships; State and municipal unitary enterprises; Production cooperatives.

Classification and types of legal entities exists as follows.

Economic partnerships are distinguished by full and limited partnerships, as well as companies with additional liability or limited.

Full partnership is characterized by the fact that participants have the right to engage in business on behalf of the organization, liability for obligations is guaranteed by their property (including personal property).

A limited partnership may have two types of participants: full comrades and limited partners (investors) who do not participate in the activities of the enterprise and bear the risk of loss only within the limits of their contributions to the partnership.

The joint-stock company is characterized by the division of capital into shares. The shareholders bear the risk of losses within the limits of the value of their shares. Types of legal entities of joint stock companies are open and closed.

Subsidiaries and affiliated companies are not liable for the debts of the main organizations.

A limited liability company is established by one or more persons, the authorized capital is divided into shares. Responsibility for the activities of the company the participants bear only the property invested in the enterprise.

A company with subsidiary liability is characterized by the fact that its participants are responsible for the affairs of the company with their property in a multiple of their deposits.

A production cooperative is an association of citizens on a membership basis for joint economic activities, which is based on personal participation and the pooling of shareholdings. Profits, as a rule, are distributed in accordance with a personal labor contribution.

State and municipal unitary enterprises are endowed with property rights to the property assigned to them. The actual owner of the property is the state or municipality. They transfer the property to the enterprise, either on the basis of business administration or operational management.

Non-profit organizations have the right to be created both in the forms provided for by the Code, poppy and in others, which provides for the law. Types of legal entities of this group include funds; Religious and public associations; Consumer cooperatives; Institutions; Organization of joint legal entities (associations and unions), including commercial organizations, but not aiming for profit. Types of legal entities of this group are characterized by such features.

The consumer cooperative includes consumer, garden, housing, dacha, partnerships of apartment owners after privatization (condominiums), etc. They are voluntary associations in order to meet the material needs of their members' needs. To do this, participants pool contributions (shares).

Public organizations and religious unions create to meet spiritual needs. They are based on common interests.

Funds began to form in Russia recently. They can be established by citizens and legal entities for various purposes: charitable, cultural, social, educational, etc. (Children's Fund, Peace Foundation). The property fund is formed by the founders.

Institutions are such organizations that are created by the owners to perform managerial and socio-cultural functions of a non-profit orientation. Funded by the owner.