A legal entity means a legal entity that has its own property, legal address, seal and is able to answer for its actions in court. Currently, various organizational and legal forms of business entities are distinguished.
In general terms, the division into commercial and non-commercial forms can be noted. The former operate in order to make profit in the future, while the latter implement social programs in the course of their activities. The legal forms of commercial enterprises are of the greatest interest, since they provide expanded reproduction. So, allocate:
- Limited and additional liability companies.
- Joint stock companies.
- Partnerships.
- Production cooperatives.
- Unitary enterprises.
The essence of any society is that its authorized capital contains components or shares that were contributed by different persons in the form of units. A limited liability company or LLC is attractive for investors in that the repayment of obligations to contractors and creditors is carried out strictly within the available funds, that is, the personal property of investors is untouchable. Thus, investors risk only the amount within the deposit. Joint liability is assigned to members of the company of additional responsibility. In case of liquidation of the enterprise, the amount of debt is divided among all investors in proportion to the size of contributions. Moreover, the personal property of investors is also subject to collection if there is a shortage of assets at the company's disposal.
The most important issues in society are resolved by convening a meeting where each member has the right to vote. The procedure for leaving the organization depends on the previously approved constituent policy. By agreement of the majority of council members, the charter of the company may include the following note:
- the impossibility of reselling or transferring its share to third parties;
- on the requirement of the written consent of all investors to sell their share or free exit from the company.
There are also such legal forms as joint stock companies. They are characterized not only by an equity contribution, but also by calculating the nominal value of shares issued by the founders. That is, the authorized capital of a firm consists of a number of issued shares of a set nominal value. These organizational and legal forms of managing are closed and open type. Representatives of the second type allow their shareholders to sell or give to third parties their share freely. The CJSC establishes a certain circle of shareholders in advance, and no transfer of shares is foreseen.
The next legal form of a legal entity is partnership. These are enterprises whose authorized capital consists of separate shares distributed between the founders. Partnership can be complete and on faith. Participants in a full company have all the rights of a legal entity:
- conduct business;
- may be defendants in court;
- responsible for the obligations of the company with personal property.
The partnership consists of several commandists. These persons are distinguished by the fact that they are liable for the debt of the company only to the extent of the amounts invested as a share in the starting capital.
By decision of state bodies, a unitary enterprise is being formed. Its characteristic feature is the lack of ownership of property. Indeed, the founders can manage the enterprise, make important decisions and distribute profits at their own discretion, but all property and start-up capital cannot be divided into parts or shares, since it is in state power.
Often formed such legal forms as production cooperatives. This is an association of people who strive to achieve common goals. Cooperatives are formed on the basis of share and property contributions of their members. As a rule, they are engaged in production or marketing activities.