Associations of legal entities are very common forms of non-profit legal entities in the circulation of the property plan. Such a picture allows us to fully ensure the different interests of absolutely all members. What features determine these structures? Which exist associations that are not legal entities? Are they endowed with any practical value? These and other equally important issues are considered in the article.
Associations and their characteristics
Today there are various types of associations of legal entities (e.g. unions or associations). They are usually formed by organizations and other structures to protect interests on a professional basis. It should be noted that the new structure in any case acts as a non-profit entity. The presented provision is valid regardless of the actual goals of the structures before reunification (in other words, the new association will be considered non-profit even when its elements were individually considered commercial).
It will be appropriate to emphasize that forms of association of legal entities are specific forms of legal significance. In accordance with the current Civil Code (namely, article 123), an association or union is considered voluntary or, in certain circumstances, a mandatory association of legal entities. Its key goal is protection, as well as representing interests in a joint manner; the implementation of tasks that are useful to society, the achievement of other non-profit mission plans that are not prohibited by applicable law. Usually association of legal entities is a union, association, or other structure that has as its main objective the management of economic activity, as well as the protection and representation of its own professional, property, or other interests of a general nature. An exception here is the interests of those involved, which are determined by their labor orientation, that is, a union or association cannot be created to protect labor rights.
Legal capacity of structures
You should know that the association of citizens, as well as public association of legal entities both mandatory and voluntary, it acquires certain obligations, as well as rights. It is important to know that the latter arise from operations by the union and specific constituent documentation. The named associations are endowed with a special kind of legal capacity, which is determined by the direct participants. In addition, legal capacity is limited to the goals and types of activities that are prescribed by the charter.
You should know that association of legal entities is a category that is entitled to engage in economic activity solely for the achievement of the goals specified in the charter. Nevertheless, the profit received due to the promotion of the actual business is not distributed between individual legal entities. When the charter of a category implies the promotion of profitable activities, under the law the capital of the new structure should equal or exceed the minimum authorized capital determined by law.
Economic associations of legal entities are categories that implement activities regulated through the current Civil Code, as well as the Federal Law “On Non-Profit Organizations”.There is no separate legislative act of federal significance for regulating the activities of associations. It should be noted that the goal of combining legal entities is achieved not only by associations or unions. Today there is a wide range of varieties of structures. They are described in subsequent chapters of the article.
Non-commercial partnership
Today, there are a number of subspecies of unions and associations that include in their own composition citizens, public associations, associations of legal entities. The first of these is to consider a structure that acts as a nonprofit partnership. It is important to know that the presented definition does not correlate with a business partnership, the purpose of which is to generate income.
By non-commercial partnership it is necessary to understand the association formed in accordance with the desire of the legal entity and the financial institution, where public associations and associations of legal entities are entitled make important decisions on your own. The key goal here is to facilitate the work of all members that are members of the FL association (legal entity often serves as the basis for the formation of the structure) in order to achieve any kind of goal other than commercial (in other words, in the case of a non-profit association, the extraction of income is inappropriate).
Self-Regulating Union
Self-regulatory association is a non-profit type organization uniting either economic entities in one production branch (in other words, marketing in terms of a product), or entities of a professionally significant activity of a specific type. Combining several legal entities according to this form, it says about the establishment of some standards. Thus, today the Law “On Self-Regulatory Structures” is in force, which clarifies the legal basis of activity.
For most areas of activity, membership in the said association is determined by a voluntary nature. However, there is a list of grow back, whose participants must necessarily act as members of certain self-regulatory structures in accordance with the nature of the business being promoted. It is important to know that an individual or legal entity is not vested with the right to join two or more considered associations in accordance with agreement of legal entities.
Employers Association
The association of employers is a union of private individuals and legal entities of a non-commercial nature, which is formed on a voluntary basis. The formation of such structures is implemented to represent and protect the current interests of their participants in the fields of vocational education, health care, insurance, and so on, as well as in social and labor relations. The activities of the organizations under consideration are regulated through the Law on Associations of Tenants, according to which employers are classified in accordance with industry and territorial characteristics.
Other associations
The union of trade unions - the union of trade unions on a voluntary basis on a territorial basis. It is important to know that, in addition to state legislative acts that regulate the activities of all associations of legal entities, there is a federal law published in 1996.
The Chamber of Commerce and Industry is a union of non-governmental and non-commercial nature, which includes more than thirty members. It is necessary to add that the latter are united to protect their own interests, as well as improve the economic and foreign trade situation in the country. It should be noted that the type of activity of the structure in question is regulated through the relevant federal law.
The Notary Chamber is an association of notaries determined by a professional character.It is important to keep in mind that membership in this kind of chamber is considered compulsory for private notaries. In addition, the activities of the represented associations are regulated by the sixth chapter of the regulatory legal act, number 4462-1 of which.
What happens less often?
It is important to note that the union of legal entities can be embodied not only in the forms listed above. So, if necessary, there is the possibility of re-registration of the association in the following forms of legal entities:
- An autonomous nonprofit structure is an association that excludes membership. It is usually formed to provide services in the social field without receiving a certain amount of profit.
- Public Association - type of association of legal entities or a voluntarily created self-governing organization. As a rule, her tasks are to realize the common interests of those participating in the association.
- Fund - an association that develops activities on the basis of voluntary contributions and excludes membership. The primary purpose of the formation here is the implementation of tasks that are useful for individual social groups or society as a whole.
- Association without a legal entity.
Circle of participants
To begin with, it should be noted that members of the association are entitled to speak in any legal entity. With regard to members of the union today there is only one limitation. In accordance with it, the union can be created either with the participation of only commercial structures, or exclusively non-profit. It is important to know that when joining the said association, the structure in any case retains full legal capacity, within which it has the right to join even more than one legal entity association (although this is usually a limitation). As a rule, participants in a new association are vested with absolutely equal rights (when other circumstances are not provided for by law), among which:
- The right to use the services of the union is absolutely free.
- The right to implement managerial functions.
- The right to receive new information about the state of the association.
- The right to access financial and accounting documentation.
A responsibility
It should be noted that members engaged in certain activities in the association bear responsibility related to the obligations of the organization on a subsidiary basis. Interestingly, its dimensions are revealed through constituent documentation.
The participants in the union, one way or another, undertake to send membership and other property contributions when this provision is indicated in the charter of the new structure. It should be noted that participants have the absolute right to leave the organization when they find this action necessary. Why is everything so simple? No contributions or payments are made here (this is the point). Nevertheless, in accordance with the current civil law, the category of membership in the union is inalienable, and the consequences of leaving in any case are established by the statutory documentation.
Establishment of legal entities
You need to know that the formation of the legal entity, one way or another, is regulated through a legislative act of the federal level under the seventh number. A union or association is deemed to have been created exclusively after its registration. For a successful registration procedure, at least 2 participants (founders) are required. According to the rules, they must come up with a name for the association, which will necessarily include the words “association” or “union”. In addition, the founders need to determine the features and key objectives of the activity, as well as prepare the papers presented in the next chapter.
Documentation
To implement the registration of a legal entity association, the following documentation is needed:
- Application document drawn up in accordance with form PH0001.
- The statutory document, as well as the decision on the creation of a new structure.
- The paper confirming that the participants in the transaction to pay state. duties.
- Information about the jur. addresses.
- Information directly about the founders of the association.
What to do next?
After completing the registration procedure in the Ministry of Justice, the founders must be assigned a TIN and OKVED code, as well as an extract from the state. Legal Entity Register, documents from the mandatory insurance procedure fund, as well as from the pension fund. In addition, a current account should be created for the effective functioning of the association. However, the last point should be notified to the public services for taxes and duties as early as possible.
The only and main constituent paper created by the organization is the charter. It is accepted by the participants in the association in accordance with the general decision. On the basis of the charter, a sole executive authority is established. It is important to know that without the latter, the functioning of the new association is not feasible. It should be added that the meeting of the founders of the structure is a rather important governing body.