Commercial organizations: types and their characteristics

All organizations can be divided into 2 categories: commercial and non-commercial. The main goal of the establishment and operation of commercial organizations is to make a profit. For non-profit organizations, profit is not an important goal.

Types of commercial organizations under civil law:

- full partnerships;

- production cooperatives ;

- Limited Liability Company;

- municipal and state unitary enterprises;

- limited partnerships ;

- companies with additional responsibility ;

- joint - stock companies ;

Features of each type:

- Partnerships (complete) are commercial organizations that are created on the basis of a special memorandum of association . Entrepreneurial activity in full partnerships is carried out on behalf of the partnership. All participants of the partnership bear property responsibility for the activities of this commercial organization. Losses and profits are distributed among each participant in proportion to its contribution.

- Production cooperatives are commercial organizations that carry out activities on the basis of personal desire of citizens, for the purpose of conducting joint economic or industrial activities. Each member of the cooperative must personally participate in economic or production activities. The responsibility of each member is subsidiary. The governing body is a meeting of members of the cooperative.

- Limited Liability Company is an organization in which the authorized capital is divided into shares between the founders according to the constituent documents. The profit between the members of the LLC is distributed according to their shares. Participants are not responsible for the debts and liabilities of their organization. The highest governing body of the LLC is a meeting of its participants.

- Unitary enterprises are commercial organizations that do not have the right to dispose of property, which is assigned to them by the owner. Unitary enterprise can not be divided between participants. The owner of the property of such an enterprise is the state or municipal service. The management body is the head appointed by the owner of the enterprise.

- Partnerships (limited partnerships) are commercial organizations in which the participants are responsible for the liabilities and debts of the enterprise with their property. In a limited partnership, unlike a general partnership, there are several investors who are responsible for the risk of losses.

- A society with additional responsibility is a society founded by one or several founders. The authorized capital of the ODL is divided among the participants into shares, which are defined in the constituent documents. The ODL carries 2 types of responsibility:

* The society itself in the amount of the established fund;

* Each participant of the company (according to contributions).

- A joint-stock company is an organization in which the authorized capital is divided into an equal in value number of shares that certify the participant's rights with respect to the company. The shareholders' meeting is the main governing body. The number of votes each shareholder holds is distributed in proportion to the number of shares acquired. The profit is also divided in proportion to the number of shares. Joint-stock companies, in which shares can be sold not only to shareholders, are called open. Joint-stock companies in which shares can not be sold without the prior consent of shareholders are called closed.

Registration of commercial organizations takes place in the registration authorities. At the same time, the registration and creation of organizations are necessarily taken into account.