What is OJSC: definition, features, organization structure

In everyday life, especially often in the media, one can find various abbreviations that designate certain organizational and legal forms and types of business entities. Often such abbreviations are used incorrectly. This provokes a misunderstanding of information about entrepreneurial activities and the difficulty of its search. It is for this reason that a detailed explanation is necessary, a complete interpretation of the abbreviations and their definition.

One of the most common types of company organization is OJSC, which provides a wide range of freedom of activity. But, of course, imposing certain obligations. In order to understand what OJSC is, it is necessary to analyze the characteristic features of this form. In addition, it is necessary to determine the structure of such an organization.

What is OJSC?

The answer to this question is quite simple. OJSC is one of types of joint stock company; a commercial organization whose authorized capital is divided into a deterministic number of shares. The company is established by two or more persons. They do not oppose the obligations, but at the same time bear the possibility of losses associated with the functioning of the company, but not exceeding the value of the shares they own.

The abbreviation itself stands for open joint stock company. However, at present, in accordance with the Civil Code, actions related to the creation, reorganization and abolition of such a community have changed. They began to be regulated by the state law "On Joint Stock Companies". The definition of the term OJSC has also been updated. According to him, organizations in which securities and shares are publicly traded are public.

Organization Features

Not every citizen understands what OJSC is and what distinguishing features it is endowed with. Firstly, a shareholder is entitled to freely sell its shares. That is, to alienate them without the consent of other participants. Secondly, both individuals and legal entities can act as shareholders. Thirdly, their number in a public joint-stock company is not limited.

The authorized capital of the organization is regulated. It should go beyond 100,000 Russian rubles. The control over the current activities of the public joint-stock company is carried out by the Board of Directors, which is an ongoing monitoring body. At a general meeting of shareholders, he is elected, and they also resolve issues related to all the activities of the organization.

When and why do I need to open a public company?

It is necessary to open a branch of an OJSC when the organization has an impressive authorized capital and is endowed with the opportunity to work with a complex tax system. For large and serious business, such a move is considered prestigious. Unlike individual entrepreneurship, in this form of ownership it is allowed to name your company as you like.

It is necessary to analyze the specifics of the organization’s activities and its plans in order to understand whether it is really necessary to open an OJSC. Public status cannot be dispensed with if a company is aimed at attracting large investments, when it is constantly expanding, developing and striving to enter or has already entered the international market. In this case, the registration of a public joint-stock company is simply inevitable. Without this, it will be impossible to place shares on the stock exchange.It is also profitable and convenient if the company is owned by several co-founders, as OJSC is a joint control over the organization. The advantage lies in the fact that the period of existence is not limited by the life of the founder, as, for example, among individual owners.

How to open a joint stock company?

In order to create and register public joint stock company it should be stated that the company issues shares. They must be registered and placed on the mature securities market. Shares act as a privilege on the property of their owner on part of the company.

To register a company, it is important to determine the taxation system with which the company will work: general, simplified or single tax on attributed income. In this case, you need to prepare the following documents:

1. The name of the organization according to the full list of requirements under the Civil Code.
2. Legal address of OJSC.
3. nominal cost one share of the company and information on the size of the authorized capital.
4. Information on the number of shares issued, payment methods and their placement.
5. Information about the choice of property and / or money option for payment of the authorized capital.
6. The designation of the position of the head and a copy of the identity document.
7. According to a certain classification, provide information on the main activities.
8. The volume of shares owned by each founder at the time of creation of the company and a copy of their passports. A.
9. Other documents.

Organization Structure

The organization is headed by the general meeting of shareholders and the main governing body - the Board of Directors. They solve the main problems, make the main decisions, determine the policy of the company. The CEO appointed by them directs the company's employees directly. First of all, by the heads of departments and services, to which ordinary ordinary employees report. Among the main departments can be distinguished legal and one that is engaged in marketing. The structure of the OJSC also includes other services, the company’s auditor, the audit commission, etc.

Obligations of an open joint stock company

A public company needs to keep records. And also take tax and accounting reports. Moscow OJSC should provide all the necessary data to the statistical authorities and budget funds of the FSS and PFR.

Reporting has some of its features:

1. The executive body is responsible for the conduct and delivery.
2. The board of directors or the general director approves the reports.
3. The auditor assures the accuracy.
4. In addition to the audit committee, the company should invite an independent auditor to confirm the annual report.

LLC, JSC, OJSC: differences and features

In the subject, we almost completely figured out. And if the knowledge about what an OJSC is, what its definitions and structure are already in place, you should understand how this company differs from other existing ones and what are endowed with advantages.

LLC is economical society limited liability company, which may be founded by one or more persons. Its activities are unlike other enterprises. For example, a CJSC is a closed joint-stock company whose shares are distributed only between a predetermined circle of persons - its founders. The main difference between JSC and CJSC is that shareholders are entitled to acquire shares alienated by others. Also, in a closed joint-stock company, the number of participants shall not exceed 50. Miscellaneous and responsibility of the founders. This is evidenced by the table below.

Ways to change the composition of participants are also different.In a closed joint stock company and open joint stock company, this is an alienation of shares. As for the LLC, there are several ways: exit or exclusion by court order. As well as the alienation of the share of the participant.