In some cases, the independent commercial activities of a legal entity may not be effective enough. In such situations, it is advisable to create business entities.
Definition of a concept
Business companies are business entities created by legal entities or individuals. They are formed by combining property, the ultimate goal of which is to maximize profits. The formed organizations themselves have the status of legal entities.
It is worth noting that participants in business entities are not only business entities, but also citizens who are not directly related to commercial activities. Entering this association, each of the entities retains its original status.
In order for an organization to have the right to be called a business company, it must meet the following criteria:
- has the form of a legal entity;
- the founders are entrepreneurs, enterprises or individuals;
- during the establishment of the company, the property values of the participants were combined;
- each of the participants in the organization has and exercises the right to directly participate in its commercial and other activities;
- the main goal of creating an association is to maximize financial benefits.
Business principles
Business companies operate in accordance with a number of principles:
- members of the association independently and freely determine the type of commercial activity;
- the development of technologies, the organization of the production process, the establishment of supplies and sales, budgeting and other things happen without outside interference;
- the company's management has complete freedom in terms of attracting and releasing personnel (within the framework of labor legislation);
- the activity is aimed at obtaining benefits, which is associated with corresponding financial risks.
Types of business companies
With the development of the economy, more and more associations of entrepreneurs appear on the market. In this regard, the following types of business companies are distinguished:
- A joint-stock company is an organization whose authorized capital is proportionally divided into a certain number of shares. Each of them has the same denomination. Shareholders (holders of securities) are responsible as part of their share in the capital.
- A limited liability company, like the previous one, also has an authorized capital divided into several parts. At the same time, holders of securities bear material liability exclusively within the framework of these figures.
- Each of the participants in the company with additional responsibility is liable on a scale proportional to its share in the capital. If the organization’s funds are insufficient to cover liabilities, then all its members repay the balance of the debt in equal shares.
- A full society is such an economic association in which participants are liable for obligations not only with their investments, but also with all personal property.
- Limited partnerships provide their members with the right to conduct business on their behalf. In this case, there is an additional responsibility. In some cases, personal property may also be used to cover obligations.
- The association arises on the basis of contractual relations.Despite the fact that its members pursue a common goal and are accountable to management, it does not in any way interfere with the commercial activities of these units.
- A corporation is very similar to an association. The main difference is that the participants delegate certain powers to the management to manage their activities.
- A consortium is an association that is temporary. After achieving the common goal prescribed in the contract and charter documents, this company ceases its activities and existence.
- A concern is an association of several enterprises or organizations that are engaged in different types of production or non-production activities. They are united by dependence on the central governing body, which finances them and coordinates activities on all key issues.
Forms of joint stock companies
Forms of business entities whose authorized capital is distributed among shareholders may be as follows:
- Open - anyone can purchase their shares during free trading. In addition, if he wants to sell his securities, the holder can freely fulfill his intention without notifying other participants in the business.
- Closed - characterized by the fact that the shares are distributed in a strictly defined circle of people (most often it is limited to the founders. In order to sell securities or transfer them into the ownership of another person, the participant must notify his partners and obtain consent from them.
The rights
The rights of a business company (namely, its participants) can be described as follows:
- participation in the management of the organization (carried out in accordance with the statutory documents, the contract, as well as legislative standards);
- participation in profit distribution as well as receiving dividends corresponding to a share in the authorized capital;
- obtaining full information about the activities of the company (we are talking about both annual reporting documents and unscheduled provision of relevant information);
- in accordance with the procedure established by law, as well as by-laws, a member of a business company may leave it.
Duties
The participants in a business partnership are required to:
- carry out their activities in accordance with the constituent documents of the organization;
- fully submit to the highest governing bodies;
- pay the authorized capital in the amount corresponding to the package of securities;
- act not only in their own interests, but also in the interests of all members of society.
Work organization
The organization of a business company involves drawing up constituent documents the main of which is the charter. It contains general information about the participants, as well as types of commercial activities. In addition, here should be described in detail the varieties and characteristics of securities, in accordance with which the payment of the authorized capital and the distribution of responsibility. Next is information about the name and coordinates, as well as the duration of the activity (if they are limited).
Business companies are required to pass state registration. For each species, it has its own characteristics. After reviewing the documents in the relevant authorities and obtaining a registration certificate, the company receives the status of a legal entity. All changes that will be further made to the charter and other constituent documents also subject to state registration.
findings
A fairly common phenomenon in the modern economy is the economic society. A commercial enterprise (or an individual) is not always able to achieve the desired results alone. In this case, organizations with similar goals and activities can come together. There are several types of business companies.They differ in types of securities, as well as the principles of distribution of responsibility between participants.
It is worth noting that the main feature of business entities is a commercial focus. After the profit is made, each participant has the right to receive his share in accordance with the package of securities or the degree of participation in the authorized capital.
