Legal entity concept The Russian Federation in accordance with the Civil Code is primarily described as an organization. Absolutely any interconnected set of persons is nothing but an entity formed for certain purposes. “Alone in the field is not a warrior” - this saying has been heard from childhood, it is clear to everyone and does not cause the slightest doubt. So in the case of a legal entity, the proposed essence remains. Which one can take characterizing legal entity example to indicate purpose? Initially, it should be understood: this is mainly the pursuit of certain interests. So, in this case, an excellent goal can serve as a profit. None other than the corresponding diversity has become a key prerequisite in order to highlight specific types of legal entitiesdescribed in this article.
Legal entity: concept and features
A legal entity should be understood as an organization that has, in its ownership, operational management or economic management, property of a separate nature and is responsible, in accordance with its own obligations, directly with these property complexes. It is important to add that the concept of legal entities in relation to the functional aspect implies the acquisition and exercise of property as well as personal non-property rights. In addition, a legal entity has certain responsibilities and has the right to be a defendant or plaintiff in the judiciary. By the way, any legal entity has its own balance or estimate.
So, the concept of a legal entity defines Its main features:
- Unity in terms of organization, involving the performance of the juridical jurisdiction in civil law relations as a whole.
- Separation in the property aspect speaks of the fact that a legal entity has certain property in accordance with any property right: the right of ownership, the right to conduct business or management.
- Independence and responsibility, which relates mainly to the civil law aspect. So, for example, manufacturing company undertakes to answer for its own obligations with its own property.
- Speaking on his own behalf in a civil circulation (conclusion of civil law contracts, fulfillment of duties, speaking by a defendant or plaintiff in judicial bodies and so on).
Types of legal entities
According to the Civil Code of the Russian Federation, legal entities not prohibited by law are classified as follows:
- In accordance with the purpose of the activity (as a rule, this is the receipt and further maximization of profit or the desire to achieve other goals not prohibited by law).
- In accordance with the legal form, in other words, according to the permitted varieties of associations.
- In accordance with the nature of the relationship directly between the legal entity and its participants (founders). Here, first of all, they consider the presence or absence of their ownership rights to legal entity property cash.
Classification by purpose of activity
In accordance with the objectives of the activity, it is customary to subdivide legal entities into two large-scale classes:
- A commercial organization is legal entity exampleaccording to which it is appropriate for a market participant to engage in commercial activities in order to obtain and further maximize profits.
- A nonprofit organization is considered to be a structure that engages in activities of a nonprofit nature, that is, its main purpose is in no way connected with making a profit that is somehow not subject to distribution among the participants in such an operation.
Legal distinction
With what business firm different from nonprofit in legal terms? In accordance with the Civil Code of the Russian Federation, both types of organizations have the opportunity to receive certain profits. However, in the case of a business combination, it is distributed among the participants (founders). In a nonprofit organization, absolutely all the proceeds are strictly directed to statutory goals.
Legal Classification
Activities of legal entities, the totality of their specific qualities, which are objectively distinguished in the system of attributes of general legal entities and, as a rule, distinguish the corresponding group from the rest, suggests the existence of a certain legal form. It is important to add that in connection with the expansion of the target aspect in the near future, the opening of new groups is possible. So, in accordance with this criterion, each class of legal entities is classified into some groups. Among them:
- Defining legal entity example in relation to commercial organizations: business partnership, business company, production cooperative, state or municipal unitary enterprise.
- Formation of organizations with non-commercial goals is carried out in accordance with the following forms: consumer cooperative; public or religious association; an institution financed directly by the owner; a charity fund or other form permitted by the legislation of the Russian Federation.
Business partnership
Economic partnership - vividly characterizing legal entity example, the main purpose of the formation of which is to make a profit. It is important to note that in this case, it is appropriate to divide the authorized (joint-stock) capital into certain contributions (shares) of the founders of legal entities. The property complex created by depositing funds of participants, as well as acquired and produced by the efforts of a business partnership in the course of its life, is absolutely legally owned by a legal entity in accordance with the right of ownership. It is interesting to add that this form of commercial structure can be formed both in full and as a limited partnership.
Business Company (JSC)
Legal entity documents in the case of a business company, they are drawn up in accordance with its variety. So, they distinguish between a joint-stock company (OJSC, CJSC), a limited liability company (LLC) and a company with additional liability (ODO).
A joint-stock company is understood to mean an organization with commercial purposes, the authorized capital of which is divided in accordance with a certain number of shares confirming the rights of shareholders that are binding. It is important to note that both legal entities and individuals (even foreign ones) have the right to be participants in a joint-stock company. The constituent documentation of the joint-stock company is its charter, where such data as the name of the structure, its location and other equally important information should be indicated. An interesting feature is that the participants in this case do not have to answer for the obligations of the joint-stock company. They only bear the risk directly related to their own activities on their shares (parts).
LLC and ODO
A limited liability company should be understood as a structure that is established by one or a number of persons. Its constituent capital is divided into parts, the sizes of which are determined through constituent documentation. In addition, the rights and obligations of participants are identified in accordance with Article 67 of the Civil Code of the Russian Federation.
A company with an additional type of responsibility is a company established by one person or a number of persons. Its main feature is the division of the authorized capital into specific parts defined by the constituent documentation. The key difference of the OFO is the possibility of subsidiary liability for the obligations of the structure directly carried by the founders of their own property.
Production cooperative and unitary enterprise
In the modern sense, a production cooperative (artel) means a union of a certain number of persons that is voluntary. The basis for this, as a rule, is membership for the formation of production or the development of other economic activities. The latter is usually based on labor participation in relation to each person, as well as on the unification of shares of the property plan by its participants.
Legal entities of private law property (namely unitary enterprises), the main difference is the lack of these rights to property complexes. The essence of this kind of organization is commercial in nature, as well as the exclusion of vesting with ownership of property that is assigned to it directly by the owner of these property complexes.
The state enterprise is called municipal and differs in the indivisibility of property and the impossibility of its distribution by shares (even between employees of the structure).
Classification by nature of relationship
In accordance with the nature inherent in the relationship between the legal entity itself and its participants, it is customary to distinguish two types of associations:
- In the first case, the ownership right to the contributions made by the founders is somehow reserved for them. A legal entity does not have ownership rights to these shares.
- In the second case, participants are not able to maintain ownership of their own contributions. So, the corresponding ownership right passes directly to the legal entity. It is important to add that this type of association is characterized by the presence of two subgroups in its structure. The first includes those organizations in which a legal entity participant is vested with certain mandatory rights in return for his share. The second grouping should include those structures in which the participant of the legal entity in any case does not receive a replacement share of the rights.
Explanations
The first case includes unitary institutions and enterprises of a municipal and state nature, as well as structures that are financed directly by their owner. In the second case, it is advisable to include all other legal entities.
The first subgroup of the second case should include business partnerships and companies (OJSC, ZAO, LLC, ODO), as well as production and consumer cooperatives. The second group of the second case includes, as a rule, associations of a public nature, organizations of a religious orientation, associations and unions that unite other legal entities, as well as charity funds and other organizations of a non-commercial nature.