Due to the huge number of different legal entities, the market often raises a large number of questions. The question is what is a company, one of them. A company is considered a commercial organization that actively conducts business activities. But such a definition can include a huge number of different companies and organizations, so what is a firm? This commercial organization is created to produce and sell goods and services. The task of the company is to make a profit.
general information
Depending on the form of business, firms can be combined into large organizational forms.
A company is a separate unit that must be legally framed. If an enterprise acts as a legal entity that independently realizes its economic interests, it can be called a company. The goods of the company can be sold not only to individuals, but also to legal entities with which such enterprises can work closely.
There are several types of firms, depending on the services they provide. So, for example, there may be firms involved in the sale of food or the provision of any services. A construction company is also quite common in the market.
Signs of the company
In addition to formal features, all manufacturing firms must have several special features.
It is important to have a separate property that can only belong to this company. Any property may belong to the company on the basis of the right of ownership or any other right to use the property. The main thing is that the commercial organization has documents confirming this right.
An organization may take part in property circulation, acting on its own behalf. It is this principle that determines what a company is. A legal entity has the full right to conclude a variety of contracts that are civil in nature, acting on its own behalf.
Manufacturing firms procure resources and in the process create various goods and benefits from them. They can speak to creditors, disposing of their property.
The final principle that defines what a company is is the ability to sue and act as a defendant in a magistrate’s court. These rights must be protected by recognition.
Company Creation
The decision that a new organization will be formed must be made by the person owning the property. On the basis of the initial investments, which are intended to start activities, to repay the costs associated with the organization of the company, a certain material base is formed. Due to this base, the purchase of raw materials, materials, hiring of labor and formation of authorized capital.
The creation of the company should be fixed by the relevant documents, which are the charter and memorandum of association. The following information must be indicated in the memorandum of association:
- organization goals;
- the principles on which it was created;
- information about all founders;
- terms and form of activity of the created company;
- the amount of the authorized capital paid at the time of drawing up the contract.
Company reorganization
Each legal organization, sooner or later, can carry out a reorganization. As a result of such a procedure, a completely new legal entity may arise. The reorganization of the company can be carried out in several ways:
- a merger is a union of two entities at once, as a result of this action a completely new economic unit appears, which may contain the main features of the predecessor organizations, and may completely differ;
- separation is the opposite action, as a result of which completely new, separate, independent firms are created from one company;
- affiliation is a type of reorganization in which a merger takes place, but one of the companies will continue its commercial activities, and the rest will join it, becoming its integral part, but lose their features.
The founders of the company decide on the need for reorganization in one way or another. A prerequisite for carrying out the procedure is to notify all creditors so that they can claim fulfillment of obligations to them and compensation for losses.
Company liquidation
Liquidation of a company is a legal way to completely terminate the business of a company of any form of ownership without transferring rights and obligations in succession to other persons. Carrying out such a procedure is allowed only in two cases. The first option is when the founder decides to liquidate the company on his own. The second option - the decision was made as a result of the trial.
