The system of domestic law does not provide for an industry that provides legal regulation of economic activity and legal relations arising during its implementation. This function is implemented through the norms of various legal branches of law. We are talking about civil, constitutional, labor, financial and other laws. In aggregate, the norms related to the legal regulation of economic activity constitute entrepreneurial law. Further in the article, we consider its features.
General information
Legal regulation in the field of economic activity is carried out by a set of norms of various legal sectors. Of fundamental importance among them are constitutional provisions that provide guarantees to entrepreneurship. In accordance with Art. 34 of the Constitution, each entity has the right to freely use their abilities and property to conduct activities not prohibited by law.
A key role in the legal regulation of economic activity belongs to the norms of administrative and civil law. The former governs the registration of business entities, licensing, etc. The relations regulated by civil law include property relations, contractual relations. They are also called horizontal, because they are based on the equality of parties. In addition, civil law regulates the status of business entities - legal entities and individual entrepreneurs (Article 2 of the Civil Code of the Russian Federation). It is worth saying that it does not apply to property relations based on administrative or other power subordination, including tax and other financial ones, unless otherwise provided by federal law. The corresponding provision is enshrined in paragraph 3 of Article 2 of the Civil Code.
The specifics of private law regulation
The basis of it is civil law. The fact is obvious that entrepreneurial activity cannot be carried out in conditions of pressure, coercion, administrative-command influence. Otherwise, the economy ceases to be proactive, free, turns into a planned one. In this regard, the dispositive method used in the framework of civil law, as much as possible corresponds to the nature of economic activity.
Areas of regulation
Civil law rules regulate:
- Legal forms of activity.
- The procedure for the formation of legal entities, the termination of their work, recognition of their bankruptcy.
- Internal relations in commercial companies.
- Relationships of property and derivatives thereof.
- Contractual relationship.
- The grounds, forms, sizes of property liability of business entities for violations committed in the course of doing business.
Key principles
The application of the provisions of regulatory legal acts issued by authorities in the field of entrepreneurship should provide conditions for the realization by business entities of their capabilities and potential. It is important to maintain a balance of interests between the state and business. For this, the following principles of legal regulation of economic activity are applied:
- Freedom of contract and business.
- Legal equality of subjects.
- Freedom of competition, restriction of the activity of monopolists.
- The legality of doing business.
Civil Law
The legal regulation of economic activity, as mentioned above, is carried out by the provisions enshrined in the Civil Code. The Code is recognized as one of the key acts regulating civil circulation. In addition to him, the legal regulation of economic activity (including external) entrepreneurship is carried out by other acts containing the norms of civil law. These include, in particular, federal laws, government decrees, presidential decrees, acts of executive power structures (departments and ministries).
It must be said that in the Russian Federation local authorities and regional authorities cannot adopt acts containing civil law norms. This is the exclusive responsibility of the federal structures.
Additionally
In addition to normative legal acts, the customs of trafficking act as sources of civil law. They represent certain rules of conduct that have developed in a particular field of activity, for example, in banking, insurance, shipping, etc.
Public Law Regulation
It is aimed primarily at preventing the negative consequences that may arise in a free market, that is, the legal support of economic security.
The relevant standards are governed by:
- The procedure for state registration of business entities.
- Antitrust activity.
- Standardization, unity of measurements, certification.
- Sanctions for violations in the economic sphere.
Licensing
To conduct certain types of activities, an economic entity must obtain special permission. The license is issued by the authorized body to legal entities and entrepreneurs subject to the requirements and conditions established by the norms.
The scope of licensing is regulated by administrative law. The key legal act is Federal Law No. 99.
Obtaining a permit means that the authorized bodies can monitor the compliance by the business entity with the requirements and conditions stipulated by the license. In case of violations, the document may be suspended. In this case, the subject is given a period of up to six months to eliminate them. If violations persist, then the license may be revoked.
The Department of Economic Security and Anti-Corruption takes an active part in detecting offenses. Subdivisions of this structure operate in all regions of Russia.
Antitrust Regulation
There is an opinion that the market model of economic activity does not need legal regulation at all, since one of the inalienable conditions is freedom of enterprise. Meanwhile, this opinion is erroneous; practice has shown the failure of this approach.
As the experience of most countries using the market model shows, complete freedom of entrepreneurship is always associated with all kinds of abuses: the appearance of low-quality products, services, which in some cases pose a threat to the health or life of consumers, the creation of fraudulent schemes to attract money from the population, etc.
The dominance of monopolies is one of the dangerous consequences of complete freedom in the market. The effectiveness of the economic system is provided by various mechanisms. One of the most important is free competition. The opposite of it is monopoly - the dominance of an economic entity in the market. Due to their dominant position, enterprises can derive superprofits without worrying about the quality of the goods or services, production efficiency, etc.
There are several institutions in the structure of the authorities, the work of which is associated with the identification of violations of antitrust laws. First of all, it is the FAS Russia. The Antimonopoly Service is working closely with the Office of Economic Security and Anti-Corruption and other law enforcement agencies.
Certification and Standardization
Everything related to the legal regulation of economic activity is aimed at protecting the health and life of consumers, ensuring the quality and interchangeability of products. Certification and standardization are essential tools to achieve these goals.
Standardization is an activity related to the establishment of rules and basic indicators to which a product, service or work must comply. It is necessary to increase the competitiveness of enterprises, achieve orderliness in the manufacturing sector.
Certification - a procedure related to the confirmation of the conformity of product quality to the requirements provided for in technical regulations, provisions of standards, terms of contracts, etc. It may be voluntary or mandatory. Forms of mandatory certification are, for example, the adoption of a declaration of conformity. Such confirmation is carried out in cases established in the technical regulations.
The sale of goods, the provision of services, the performance of work, the certification of which is mandatory, is carried out exclusively with a certificate of conformity.
State bodies authorized to monitor compliance with the requirements of the standards, in case of violations, may apply administrative measures to the perpetrators, including fines and bans on the sale of goods.
Economics and Management
In the process of managing a variety of legal relationships. They are not limited solely to the interaction of the consumer and the manufacturer. Of great importance in the market system is the management of the economy. It represents a deliberate streamlining effect on the economic activities of all participants in the turnover.
The labor of employees of any enterprise is organized for the most efficient use of production assets and to provide the owner with a high income. In this case, the direct dependence of management on property is visible. In some cases, the owner of the enterprise is its leader, in others - it hires specialists for this.
Management is closely related to the division of labor and cooperation. The effectiveness of management is achieved by ensuring a coordinated and focused work, a clear distribution of functions between participants in the production process.
Managment structure
Regulation of economic activity is carried out through a set of measures and tools that are agreed with each other and scientifically based. All these methods, techniques, methods are used by the administrative apparatus - governing bodies.
Coordination and regulation of socio-economic processes is carried out at the federal, regional and territorial levels.
Regional authorities and local self-government in the Russian Federation are responsible for strengthening economic ties and stabilizing the local economy.
At the federal level, management functions are carried out by the Government, the President, ministries and departments, the Accounts Chamber, and Parliament.
Government Functions
In the system of state regulation of the economy, the Government is one of the key subjects of management. This body provides control over the level of employment and the balance of payments, the introduction of innovative socio-economic programs with the aim of redistributing income, etc.
At the government level, measures are being developed to control the use of natural resources, financing educational, food and other programs.
Departments and ministries
These links of the system carry out operational management in the relevant economic sectors. Ministries and departments receive statistics, results of monitoring of production processes, market analysis, consumer demand, manufacturers' proposals. Based on the information received, programs are developed to optimize costs, the most promising areas of development are identified.
Regulatory tools
In addition to normative legal acts, among effective measures more and more priority is given to financial and credit methods. It is, in particular, about measures of tax, customs, depreciation, credit, and foreign exchange policies.
In different countries, a certain relationship is established between different forms and instruments of economic regulation. Depending on the method of exposure, indirect and direct regulators are distinguished. The latter include methods and measures that strictly regulate the behavior of participants in the turnover. They are expressed in the form of laws, orders, orders, decrees, judicial acts.
Indirect regulators suggest the possibility of choosing one or another action. For example, different taxation conditions, different prices, rates, tariffs, customs duties, etc. can be attributed to them.
Other areas of public law regulation
The protective function in the field of economic management is performed by administrative law. Its norms enshrine various sanctions for violations in the field of entrepreneurial activity in general and for non-compliance with requirements in specific economic sectors.
Criminal norms apply to offenses of high public danger.
Indirect legal regulation is carried out using tax legislation. Despite the fact that the rights and obligations of entities in the business sphere are not defined in the Tax Code, the Code can have an indirect effect on participants in legal relations by establishing different taxation regimes, benefits, rates, etc.
Types of responsibility of economic entities
The most severe is criminal punishment. Only individuals can be held liable under the Criminal Code - managers, accountants, employees, specialists. Punishment is imputed only on condition of proof of guilt. The basis for criminal prosecution is the commission by a person of an act having signs of a crime.
Administrative sanctions can be imposed on both citizens and legal entities. The grounds and procedure for holding liable is established in the Code of Administrative Offenses. The most common type of sanction is a fine. One of the most serious punishments is disqualification - deprivation of the right to conduct a certain type of activity.
Responsibility under the Tax Code comes for violation of tax standards. It is, for example, about late submission of a declaration, non-fulfillment of budgetary obligations, provision of false information in reporting, etc. Tax liability consists in imposing a fine on the subject.
Civil law measures are applied to persons violating the rights of other entities. This type of liability ensures the restoration of the situation that existed before the violation of rights. So, a person whose interests have been infringed has the right to demand compensation for harm (including moral). In addition, the Civil Code provides for sanctions in the form of penalties, fines, and penalties for entities that violate the terms of the contract.