Business Companies

It is these societies that are the most universal, and therefore widespread. Economic societies are created by one person (the owner), or at once by several persons by segregation of property with the purpose of conducting the enterprise activity. They are a type of enterprise.

Economic companies and their types of Russian legislation is divided into three categories: with limited liability, with additional responsibility and joint-stock. Unites their authorized capital, which is divided into shares. Actually, this is precisely what distinguishes economic societies from other commercial organizations. The property fund created by the participants (founders) belongs to all participants by the right of ownership and is divided into shares.

Consider the types of business entities in more detail.

Limited Liability Companies are commercial organizations in which the authorized capital is divided into predetermined sizes (shares). Established by several persons, and by one person. Ownership of the company is the contributions of its participants (risk invested funds). Hence the name.

Among the constituent documents, there must necessarily be a memorandum of association (with two or more participants) and a charter. The supreme body is the assembly. The leadership can exercise as one (elected) person, and the board (collegially). The name of the society should contain the phrase "limited liability".

A distinctive feature is the closer relations of the participants, in the more closed nature of membership. The maximum allowed number of participants is 50. Otherwise, the company is subject to either transformation into a production cooperative (or joint-stock company) or liquidation.

Changes in the composition of participants, like their property status, are not grounds for liquidation.

To companies with additional responsibility are classified as commercial organizations, where the authorized capital is allocated to certain shares in advance. The founder can be either one person or several (subsidiary responsibility in this case is borne by contributions to the authorized capital, respectively). The main provisions are reflected in Article 95 of the Civil Code. This society, according to the name, differs from the previous one by the presence of the responsibility of members in proportion to their shares. If one of the participants becomes bankrupt, its share "grows" to those of the other participants.

Joint stock companies include commercial organizations that have an authorized capital, which is divided among the participants in the form of shares. May be open and closed (Federal Law, Article 7, paragraph 1).

Exit from the company is possible only with the alienation of shares belonging to a shareholder, or the payment of an equivalent in a fixed amount. The risk of losses of shareholders is determined by the value of shares. Participants who do not fully pay shares are jointly and severally liable (the risk is proportional to the unpaid portion of the shares).

A company can be created on the basis of an already existing legal entity (in case of reorganization), it is also possible to establish a new one. The relations of the founders are regulated by the memorandum of association.

The constituent document of the organization is the charter approved at the meeting, which fixes the name (short and full), location (address), shareholders' rights, types of shares, their value and quantity, the volume of authorized capital, representative offices and branches, etc. Management bodies - council Directors or a meeting of shareholders.

Business associations are legal entities engaged in any business that does not contravene legislation. They independently conduct operational (accounting) accounting, determine static information and provide reports to the bodies specified by law.