What are commercial and non-profit organizations?
Commercial and non-profit organizations, in fact, legal entities, subdivided, thus, depending on the purpose of creation. The former aims at making profit from commercial activity and distributing it among the participants in the enterprise. The latter can also be engaged in entrepreneurship, however, in this case, the profit is spent on purposes for which a legal entity was created and therefore cannot be distributed among its participants.
The activities of non-profit organizations are usually aimed at achieving social, educational, charitable, scientific and cultural goals, the development of sports and the satisfaction of other needs of citizens.
Commercial and non-profit organizations. Forms.
The list of forms (types) of commercial organizations is exhaustive and enshrined in the Civil Code of Russia. These include:
- business partnerships and societies. They are commercial organizations whose authorized capital is divided into contributions of participants.
Business partnerships are created in the forms of full partnership, as well as partnership in faith. The members of the partnership have the right to participate in the implementation of the organization. Profit is divided in proportion to shares. All participants in full partnership are equal. They risk their property. A limited partnership means a partnership in which, in addition to participants engaged in activities aimed at making a profit on behalf of the partnership and responsible for the partnership’s obligations with their own property, there is at least one that risks property within the deposit amount and does not take part in doing business .
Business companies operate in the forms of AO, LLC, ODO.
AO is a company in which the authorized capital consists of a certain number of shares. Participants are not liable for the obligations of the enterprise, and the risk of losses does not exceed the limit of the value of shares. AO can be closed and open type. If the circle of persons to whom the shares can be sold is determined in advance, the company is considered closed. Otherwise, open.
LLC - a company in which the authorized capital is divided into shares, which are determined by constituent documents. LLC participants are not liable for the obligations of the company and risk only contributions.
ODO - a company in which participants for the obligations of the enterprise meet their property in a multiple of the value of deposits.
- state unitary municipal enterprises;
A unitary enterprise is a commercial organization that does not have ownership rights to fixed, being indivisible, property in municipal or state ownership.
- production cooperatives.
Production cooperatives are commercial organizations, representing associations of citizens on a voluntary basis, functioning for the purpose of joint production and other economic activities on the basis of membership. The property is formed by units of members of the cooperative.
The list of non-profit organizations may be supplemented. Non-profit organizations are created in the form of: religious and public associations and organizations, consumer cooperatives, institutions, non-profit partnerships, autonomous non-profit organizations, associations and unions, foundations, etc.
The activities of non-profit organizations are limited by constituent documents (charter and memorandum of association), are directly registered in them and cannot go beyond.
Commercial and non-profit organizations are considered created from the moment of state. registration. At the same time, non-profit organizations operate without a limitation on the duration of activities and subsequent re-registration is not required.