Associations of legal entities (associations and unions) serve as very common forms of a non-profit legal entity in property turnover. This allows us to fully ensure the diverse interests of all members. What are the characteristics of these organizations? What are the features that distinguish forms of association of legal entities? Are they endowed with practical value? You can find answers to these and other equally interesting questions in the process of reading this article.
Associations and their features
Today there is such a category as association of legal entities (association or union). It is formed, as a rule, by organizations and enterprises with the aim of protecting their interests at a professional level. It is important to note that the new association, one way or another, acts as a non-profit entity. This provision is valid regardless of the objectives of the organizations' activities prior to reunification (that is, the new association will be non-profit even when its components were separately commercial).
To begin with, it would be advisable to consider the legal forms that may be worn. non-profit association of legal entities. In accordance with the Russian Civil Code (Article 123), a union or association is a voluntary or, in certain circumstances, mandatory association of legal entities. Its main purpose is nothing more than the protection and representation of joint interests; the implementation of tasks useful to society, as well as the achievement of other non-profit missions that are not prohibited by Russian law. Usually, association of legal entities (association or union) its purpose involves the management of economic activity, as well as the representation and protection of their property, professional or other common interests. The exception in this case is the interests of the participants, determined by the labor nature, that is, an association or union cannot be formed to protect labor rights.
Legal capacity of associations
It is important to note that both mandatory and voluntary association of citizens and legal entities gains civil obligations and rights. One way or another, the latter stem from the activities of the union and the relevant constituent documentation. The associations considered in the article have a special type of legal capacity, which is determined by their participants. In addition, legal capacity, as a rule, is limited by the goals and varieties of activities prescribed by the charter.
It should be noted that association of legal entities has the right to engage in entrepreneurial activity solely for the achievement of the goals defined by the charter. However, the profits made by advancing this case cannot be distributed among individual legal entities. Then, when the charter of the structure implies the development of activities that are profitable, then in accordance with the legislation, the capital of the new association must exceed or equal the minimum authorized capital determined by law.
Business associations of legal entities carry out activities that are regulated through the Russian Civil Code, as well as the Federal Law "On non-profit organizations."As it turned out, there is no separate federal legislative act to regulate the activities of the associations considered in the article. It is important to note that the purpose of combining legal entities achieved not only by unions or associations. Today, there are a number of varieties of associations. They are all described in subsequent chapters.
Non-commercial partnership
As it turned out, today there are several subspecies of associations and unions. The first of these would be appropriate to consider association of legal entitiesacting in the form of a non-profit partnership. It is important to note that this definition is not tantamount to economic partnership, the purpose of which is to make a profit.
Non-profit partnership should be understood as an organization formed at the request of legal entities and citizens. The main goal in this case is to facilitate the activities of all members of association of citizens (legal entity here is often the basis for creating a structure), for achieving any kind of goals other than commercial (that is, in the case of a non-profit society, profit-making is inappropriate).
Self-regulatory Association
A self-regulatory association is nothing more than a non-profit organization uniting either business entities in a single manufacturing industry (or marketing in terms of products), or professionally directed business entities of a certain type. Association of legal entities in accordance with this form implies the establishment of certain standards. So, today there is a law “On self-regulatory organizations”, which clarifies the legal basis of activity.
For most areas of activity, membership in such an association is voluntary. However, there is a list of industries whose participants must be members of certain self-regulatory organizations in accordance with the directivity of the case. It is important to add that the individual or structure does not have the right to join two or more such associations.
Employers Association
Employers Association is association of individuals and legal entities non-profit character, formed on a voluntary basis. The formation of such associations is carried out with the aim of representing and protecting the interests of their participants in the fields of vocational education, health protection, insurance and other spheres, as well as in social and labor relations. The activities of this type of organization are regulated by the law "On associations of employers", in accordance with which employers are classified by industry and territorial criteria.
Other associations
The union of trade unions is a union of trade unions on a voluntary basis in accordance with the territorial principle. It is important to add that in addition to state laws 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 nothing more than a union of non-governmental and non-commercial nature, including at least thirty members. The latter unite in order to protect their own interests, as well as improve economic and foreign trade activities. It must be added that the type of activity of the chamber of commerce is regulated by the relevant federal law.
The Notary Chamber is a notary association of a professional nature. It is important to know that membership in this chamber is a compulsory measure for private notaries. The activities of this kind of associations are regulated through the sixth chapter of the legal act under the number 4462-1.
Rare cases
It is important to note that association of legal entities can be embodied not only in the forms listed in previous chapters. So, if necessary, it is possible to re-register the association in the following forms of legal entities:
- An autonomous non-profit association is nothing more than an association that completely excludes membership. As a rule, it is formed in order to provide services in the social sphere without making a profit.
- A public association is nothing more than a voluntarily formed self-governing organization. Usually her tasks are to implement and bring into reality the common interests of the members of the association.
- A foundation is an association that excludes membership and develops activities on the basis of voluntary contributions. The main purpose of the formation in this case is the implementation of tasks useful for individual social groups or society as a whole.
Circle of participants
To begin with, it should be noted that absolutely any legal entities have the right to act as members of the association. As for the members of the union, there is only one limitation. So, the union can be formed either with the participation of exclusively commercial organizations, or only non-profit structures. It is important to note that upon joining such an association, an enterprise, one way or another, retains absolute legal capacity, within which it has the right to join even more than one association of legal entities (although this is usually a limitation). Usually, members of an association are vested with equal rights (unless otherwise provided by law), among which are the following:
- The right to use the services of the union on a free basis.
- The right to participate in management.
- The right to receive relevant information about the status of the association.
- The right of access to financial and accounting documents.
Question of Responsibility
It should be noted that the participants in the association are liable for the obligations of the organization in accordance with the subsidiary principle. It is important that its dimensions are determined by the constituent documentation.
Members of the union undertake to send membership or other property contributions, if this provision is specified in the charter of the formed structure. It must be added that the participants are entitled to leave the association when they deem it necessary. Why is everything so simple? The fact is that in this case no contributions or payments are made. Nevertheless, in accordance with Russian civil law, membership in the union is inalienable, and the consequences of leaving, one way or another, are established in the charter documentation.
Establishment of legal entities
It should be noted that the formation of the association of legal entities is regulated by the federal legislative act under the seventh number. An association or union is considered to be created immediately after its registration. For a successful registration procedure, at least two participants (founders) are required. They must come up with the name of the association, which will necessarily include the words “union” or “association”. In addition, the founders must determine the features and main goals of the structure, as well as prepare the documentation given in the next chapter.
Documents relevant to the institution
The following documentation is required to implement the registration procedure for an association of legal entities:
- Application paper issued in accordance with form PH0001.
- The charter, as well as the decision on the formation of the new organization.
- A document confirming that the founders made a state duty payment operation.
- Information about the legal address.
- Information directly about the members of the association (founders).
What to do next?
After the registration procedure in the Ministry of Justice, participants must assign the TIN and OKVED code, as well as obtain an extract from the state register of legal entities, documentation from the mandatory insurance procedure fund and the Pension Fund. In addition, a current account should be opened for the proper functioning of the association. However, it is necessary to notify the state tax and duty service in advance of the last moment.
Association Charter
The only and main constituent document of the organization being created is the charter. It is adopted directly by the founders of the association in accordance with a joint decision. On the basis of this charter, the sole executive body is established. It is important to note that without the latter, the activities of the new association are not feasible. It must be added that the meeting of the founders of the organization also serves as a rather important governing body.