The classification of legal entities

Classification of legal entities shall be in accordance with the Civil Code.There are three main criteria on by the division.

Thus, the classification of legal persons made in accordance with the objectives of creation of the organization.An important here is and the form of the company.

Thus, there is the category of "commercial entities".This group included those organizations whose purpose is considered to be a profit through the exercise of any activity which is not contrary to the law.

There are also "non-profit entities."These companies do not consider the recovery of income as a primary objective and, accordingly, do not distribute profits among the participants.

It should be noted that the above classification of entities considered to be somewhat arbitrary.This "conditionality" unsubstantiated separate regulations.For example, non-profit organizations is permitted business activities, if the requirements of the legislator, under which the activities of the company corresponds to the purpose of his creation.

Said separation causes the formation of companies, forms of which are expressly provided for by the Civil Code.

Classification of legal entities is made on the basis of the legal regime of the property belonging to them.So, there are subjects with rights to operational management, ownership, economic management.It should be noted that a number of educational, cultural and other institutions (schools, museums, theaters, etc.) are entitled to self-disposal income that are derived from business activities permitted by law.

Separation of enterprises according to the property status and objectives of has important practical significance.For commercial organizations vested with general legal capacity.This means that these companies are allowed to engage in any business activity that is not prohibited by law.At the same time the founders of an organization there may be limits on the production of certain specified activities or a complete list of its data types that is fixed in the relevant documents.Some activities may be carried out only on the basis of special permits - licenses.Thus, the organization, in the basic instruments which do not contain a complete list and there are no prohibitions, may require the provision of a license.The enterprise thus can not be denied a permit on the grounds that this type of activity is not contained in its charter.

Nonprofits, unitary enterprises and other institutions that carry out activities of a specific nature (insurance companies, banks, etc.) may only activities that are consistent with the objectives of their formation.In addition, all subjects who have the right of operational management or economic control, may only exercise their rights under the law, the job owner or the purpose of the activity in accordance with the purpose of the property.

Separation of legal entities is carried out and also depending on whether to keep the participants (founders) any rights with respect to assets formed organization.In accordance with this criterion, there are four groups of companies:

  1. Organization on whose property the founders of the rights are not preserved.These include all kinds of non-profit organizations, in addition to partnerships.
  2. Organization, in relation to property which the founders have retained liability laws.These include co-operatives, non-profit partnerships, and others.
  3. Organization, in relation to property which retains the right to economic management.These institutions include subsidiaries.
  4. agencies with respect to the property of whom the founders retained the right of ownership.