An independent business entity operating in a market economy is an enterprise. An enterprise is created to produce products, perform work and provide services in order to meet consumer demand and make a profit. It independently carries out its activities, sells its products, uses the profit remaining at its disposal after paying taxes and other obligatory payments.
IN Russian Federation enterprises that are in federal ownership, state ownership of the republics within the Russian Federation, territories, regions, autonomous regions, autonomous districts, municipal and private property can be created and operate. The relations of the enterprise with other enterprises, organizations, institutions, bodies of state and municipal administration and citizens are regulated by law.
The constituent documents of the enterprise are its charter, as well as the decision on its creation and the agreement of the founders. The charter defines the organizational and legal form of the enterprise, management and control bodies, the procedure for distributing profits and forming funds. Termination of the activity of the enterprise can be carried out in the form of liquidation or reorganization. The forms of reorganization of an enterprise are merger, accession, division, separation from the previous structure or transformation into another organizational and legal form.
The scale and nature of the organizational problems facing the manager vary depending on the size of the enterprise. For example, the organizational problems of small businesses focus on the division of work, the establishment of responsibility, and the determination of the scope of control. Medium-sized enterprises are more concerned with the use of functional organization, staff rationalization and coordination. Large organizations have problems with decentralization, balancing the efforts of various departments as enterprises grow.
The degree of involvement of enterprises in market forms of management largely depends on its focus on consumer needs and production. competitive products. Well organized businesses are more efficient. If an enterprise is established and operates on the basis of modern principles, then the satisfaction of its employees with the results of labor is higher. An irrational organization requires much more time to solve problems, many of which are generated by the organization itself.
The activity of the enterprise is cyclical. Failures and disturbances in this activity are symptoms of the emergence of problems in the organization itself. It is important to study these symptoms, to carry out changes and organizational adjustments, to control how problems are solved. From these positions, the organizational structure of the enterprise should be based on such principles as the ability to respond flexibly to changing market needs, ensuring the optimal level of decentralization management decisions, personified responsibility for the organization and performance of the functions of the enterprise. These principles should be reflected in the approved regulation on the organizational structure of the enterprise. The main range of issues regulated by this provision can be reduced to the following:
the main activities of the enterprise;
basic functions of enterprise management (marketing, organization of production, finance, economics, accounting, personnel, information service);
the composition of the service functions of the enterprise;
determination of the type of structure (linear, linear-functional, divisional, matrix, combined);
the composition of the organizational units of the enterprise, the functions assigned to them and the determination of the procedure for their implementation (rights, obligations, terms, incentives and punishments);
the allocation of independent units (auxiliary, servicing), the formation of profit centers;
determination of the procedure for monitoring the compliance of the organizational structure with the areas of activity of the enterprise and the personification of responsibility for the implementation of the specified control function.
Types of organization of business entities
In accordance with the Civil Code of the Russian Federation, in force since the beginning of 1995, legal entities that are commercial organizations can be created in various forms(Fig. 3.3).
Rice. 1.3
Business partnerships and companies are commercial organizations with joint (share) capital, divided into shares (contributions) of its participants. Business partnerships can be created in the form of a general partnership and a limited partnership (limited partnership). Business companies may be created in the form of a joint-stock company, a limited liability company or an additional liability company. Participants in general partnerships and general partners in limited partnerships may be individual entrepreneurs and (or) commercial organizations. Participants business companies and investors in limited partnerships can be citizens and legal entities. State bodies and bodies local government shall not be entitled to act as participants in economic companies and investors in limited partnerships, unless otherwise provided by law.
A general partnership is a partnership whose participants (general partners), in accordance with the agreement concluded between them, are engaged in entrepreneurial activities on behalf of the partnership and are liable for its obligations with all their property.
A limited partnership (limited partnership) is a partnership in which, along with the participants who carry out entrepreneurial activities on behalf of the partnership and are liable for the obligations of the partnership with their property (general partners), there are one or more contributors (limited partners) who bear the risk losses associated with the activities of the partnership within the limits of the amounts of contributions made by them, and do not take part in the implementation entrepreneurial activity partnerships.
Society with limited liability is a company founded by one or more persons, the authorized capital of which, in accordance with founding documents divided into shares of certain sizes; participants in a limited liability company are not liable for its obligations and bear the risk of losses associated with the activities of the company, within the value of their contributions.
An additional liability company is a company founded by one or more persons, the authorized capital of which, in accordance with the constituent documents, is divided into shares of a certain size; the participants of such a company jointly and severally bear subsidiary liability for its obligations with their property in the amount of a multiple of the value of their contributions, determined by the constituent documents of the company.
A joint-stock company is a company whose authorized capital is divided into a certain number of shares; participants of a joint-stock company (shareholders) are not liable for its obligations and bear the risk of losses associated with the activities of the company, to the extent of the value of their shares. A joint stock company whose members may alienate their shares without the consent of other shareholders is recognized as an open joint stock company. Such Joint-Stock Company shall have the right to conduct an open subscription for shares issued by him and their free sale on the terms established by law and other legal acts. A joint stock company whose shares are distributed only among its founders or other predetermined circle of persons is recognized as a closed joint stock company. Such a company is not entitled to conduct an open subscription for shares issued by it or otherwise offer them for purchase to an unlimited number of persons.
A production cooperative (artel) is a voluntary association of citizens for joint production or other economic activities (production, processing, marketing of industrial, agricultural and other products, performance of work, trade, consumer services, provision of other services), based on their personal labor and other participation and consolidation of their property share contributions.
A unitary enterprise is a commercial organization that is not endowed with the right of ownership of the property assigned to it. The property of a unitary enterprise is indivisible and cannot be distributed among contributions (shares, shares), including among employees of the enterprise. The property of a state or municipal unitary enterprise is, respectively, in state or municipal ownership and belongs to such an enterprise on the basis of economic management or operational management.
A non-profit organization is an organization whose main purpose is not to extract profit and distribute it among the participants. Non-profit organizations can be created to achieve social, charitable, cultural, educational, scientific and managerial goals, to protect the health of citizens, to develop physical education and sports, meeting the spiritual and other interests of citizens and organizations, resolving disputes and conflicts, providing legal assistance, as well as for other purposes aimed at achieving public benefits. Non-profit organizations can be created in the form of public or religious organizations (associations), non-profit partnerships, institutions, autonomous non-profit organizations, social, charitable and other funds, associations and unions, consumer cooperatives, as well as in other forms provided for by federal laws.
The distribution of registered economic entities by type of ownership is evidenced by the following data (as of January 1, 1999): state and municipal property - 11,4%, private property- 76.1%, mixed Russian ownership - 5.8%. Of the privately owned organizations, 74.7% were founded by individual citizens. Share of citizen-founded enterprises in trade and catering accounts for 90%, in industry - 82.4%, in construction - 82.5%, in real estate operations - 83.9%.
In the Russian Federation, enterprises with foreign investment can be created and operate in the form of:
enterprises from equity participation foreign investment ( joint ventures), as well as their subsidiaries and affiliates;
enterprises wholly owned by foreign investors (foreign enterprises), as well as their subsidiaries and branches;
branches of foreign legal entities.
There are legislative and normative orienting regulators of business relations. At the same time, the following functions are assigned to the state:
establishment of regulatory requirements for the content and quality of entrepreneurial activity and, accordingly, products, goods, services (quality standards, environmental, sanitary standards, etc.);
determination of procedures for conducting economic affairs by issuing licenses, adopting documents on the procedure for carrying out economic activities;
the introduction of prohibitions and sanctions for deviation from the norms of the law;
control and supervision over compliance with the law in business activities.
When entrepreneurs choose the organizational and legal form of their enterprise, most often they create an LLC or register an individual entrepreneur. But there are other options as well. How to choose the right form for a new organization in 2018.
Read our article:
What is meant by the legal form of a legal entity
To a person who rarely encounters legal terminology, the expression "organizational and legal form of an enterprise" may seem cumbersome and awkward. Such an expression, he thinks, refers to large enterprises with some special status. But we can talk about the usual LLC. So what is it?
The organizational and legal form of an enterprise is the legal foundation of entrepreneurial activity. This is a system that:
- determines who and how will lead the organization;
- establishes limits of liability;
- predetermines the rules for making transactions and other aspects of economic activity.
For example, in an LLC or JSC, the business is managed by general meeting owners. Management issues are decided by the CEO - within the framework of the powers that are defined in the law and the charter. In particular, the meeting must agree to certain transactions. And in a simple partnership, each of the participants in the organization has the right to conduct business, unless otherwise specified during its creation.
- commercial and non-commercial - by the purpose of creation ();
- unitary and corporate - according to the method of management ().
Before registering a company, the founders decide what it is created for - for profit or for other purposes. If the choice is in favor of the financial component, then the organization will be classified as commercial. And if the main purpose of the activity is not to make a profit, then the choice must be made from the list of non-commercial forms.
What types of organizational and legal forms of enterprises are identified in the law
Let us analyze into what organizational and legal forms the law divides organizations.
What organizational forms are non-profit
- consumer cooperative. This is a voluntary association of people and their property for the implementation of joint projects. They are quite common: for example, these are GSK, ZhSK, OVS.
- Public and religious organizations. They are an association of citizens in order to satisfy spiritual or other needs not related to financial side life (political, for example).
- Funds. Such an organization exists on voluntary contributions from citizens and legal entities and has no membership. They are created to achieve socially useful goals: educational, charitable, cultural and others.
- Association of property owners. TSN is based on an association of owners of apartments, dachas, land plots, and other real estate, which TSN members jointly use.
- Associations (unions). They are created to achieve the common goals of citizens or legal entities.
- institutions. The owner chooses such a form for the implementation of non-commercial functions, and he also finances the organization. At the same time, an institution is the only type of non-profit organization that has property on the basis of the right of operational management.
- There are other, less common organizational and legal forms of enterprises: for example, Cossack societies or small communities of indigenous peoples of the peoples of the Russian Federation.
Organizational and legal forms of commercial enterprises: what is it
Commercial forms:
- Business partnerships. There are both general partnerships and faith-based ones. They differ from each other in the degree of responsibility of the participants. The form is not very popular.
- production cooperatives. This is a voluntary association of citizens based on membership and share contributions.
- Business partnerships. Their work is regulated by a separate. A very rare form.
- Peasant economy. An enterprise that has such an organizational and legal form is an association of citizens for conducting Agriculture. It is based on their personal participation in business and property contributions.
- Economic companies. This is the most popular option for commercial organizations. They are presented in the form of limited liability companies (LLC) and joint-stock companies (JSC).
If a citizen wants to engage in commercial activities, but without forming a legal entity, he has the right to register an individual entrepreneur. This is another popular form of doing business. IN All-Russian classifier organizational- legal forms(OKOP) IP has its own number - 50102.
What you need to know about LLC
For enterprises in Russia, LLC is the most common organizational and legal form. Such companies:
- belong to business companies
- conduct business activities,
- bring profit.
The capital of LLC is formed by the contributions of the participants, divided into shares. This form of business organization is suitable for entrepreneurs who, for one reason or another, are not satisfied with the status of an individual entrepreneur. LLC can be quickly created. This form requires less maintenance costs than AO.
What are the main features of AO
JSC is the second most popular organizational and legal form legal entity. The capital of the organization is divided into a certain number of shares. JSCs are divided into public (PJSC) and non-public (NJSC). The main difference between them is that in PJSC shares can be freely alienated, in accordance with securities laws.
What are the pros and cons of IP
The main advantages of the IP status:
- Quick registration.
- Low stamp duty.
- Fewer fines compared to legal entities.
The main disadvantage of the IP status is that the entrepreneur is liable for obligations with all his property.
How to choose a form of enterprise for your business
Before choosing the legal form for your enterprise, the manager needs to answer the following questions:
- How will the company be financed - will it require an investor?
- Are there any plans to hire staff?
- What is the expected monthly and annual turnover from the business?
- Which payment is preferable - cash or non-cash?
- Is it possible to sell the business?
If we are talking about the most common types of business, then entrepreneurs most often choose between the status of an individual entrepreneur and an LLC:
- IP registration is faster and easier, and fines are much less. But the citizen will have to answer with all his property.
- LLCs are convenient for those who open joint business. The authorized capital is divided into shares, which depend on the size of the participants' contributions. The LLC is not liable for the obligations of the founders, and the founders are not liable for the obligations of the LLC (with the exception of cases of subsidiary liability, which are provided for in the law - for example, in case of bankruptcy). But you will have to pay maximum fines, and maintaining an LLC requires funds.
The type of business organization you choose depends on:
- financial expenses,
- the amount of liability
- limits of authority of governing bodies and much more.
When filling out various forms / documents in financial institutions and other structures, it is often necessary to indicate the legal form of the organization in which a person works, studies, etc. Such information is required to be presented when making a payment for services, and when applying for a loan, and in other situations. Therefore, further we will consider in detail what the organizational and legal form is, what it is and how to write it down correctly in documents.
Deciphering the concept
The organizational and legal form of a company, institution, firm, etc. (hereinafter referred to as OPF) is a legal form within which the process of creating a business entity and its further functioning is carried out. It also determines the type of ownership and operation of the assets at its disposal (including property, cash).
In Russia, the name of each enterprise, institution, firm, organization and other entities begins with an abbreviation, behind which the wording of the legal form is hidden. This element is a mandatory attribute of the official name of each economic entity of the Russian Federation.
Typology of organizational forms of Russian organizations
Jur. Individuals may belong to one of the following groups:
- Commercial group. Such organizations are created to obtain material benefits from the business and its development.
- group. These organizations do not pursue the goal of making a profit, they usually represent the interests of society, solving charitable, socio-cultural, scientific, educational and managerial tasks.
OPF of business entities that pursue commercial goals:
| Name | Subspecies | Abbreviated common designation |
|---|---|---|
| Companies can be: | with limited liability | OOO |
| non-public stock | NAO | |
| public stock | PAO | |
| Partnerships can be | complete | Fri |
| limited (on faith) | TV | |
| to produce something | PC | |
| Peasant/farmer households | KFH | |
| Business partnerships | HP | |
| Unitary companies on the right of economic management can be: | federal state unitary companies | FSUE |
| state unitary companies (indicating the name of the subject of the Federation) | State unitary enterprise "mark on the subject of the Federation" | |
| municipal unitary companies | MUP | |
| Unitary companies on the right of operational management can be: | federal government companies | FKP |
| state-owned companies (indicating the name of the subject of the Federation) | CPS "mark on the subject of the Federation" | |
| municipal government companies | ITUC | |
The most common OPF of business entities that do not pursue a commercial goal as the main one:
| Name | Abbreviation (abbreviation) |
|---|---|
| consumer type cooperative | PC |
| Social movement | OD |
| Political Party | PP |
| Foundation/public type foundation | Fund/OF |
| Institution/institution of public type | Uch / Ouch |
| State Corporation | GC |
| Non-Profit Partnership | NP |
| Autonomous non-profit company | ANO |
| Community | Community |
| Association | AC |
| Union | Union |
| Association of Peasants'/Farmers' Organizations | ASKFH |
| Territorial organization of the trade union | TOProf |
| Association of homeowners | HOA |
| Association of Gardeners | ST |
OPF for business entities without opening a legal entity. faces:
Samples of OPF of various types of state institutions:
- State. budgetary institution of the XXX region (GBU XXX region);
- State. budgetary institution of the settlement of XXX (GBU of the city of XXX);
- State. budgetary institution (GBU);
- Federal State uchr-e (FGU);
- Regional state uchr-e (OSU);
- Federal State budgetary institution (FGBU);
- State/Municipal state institution (G / M KU);
- Federal State autonomous educational institution higher education(FGAOUVO);
- State. educational institution of higher / secondary education (GOUV (S) O);
- Municipality preschool educational institution (MDOU);
- State. military educational institution of higher education vocational education(GVOUVPO);
- Federal State health protection institution (FGUZ);
- Municipality institution of health protection (MUZ);
- State. budgetary institution of arts/culture XXX reg. (GBUK XXX.reg.);
- State. Art/Culture Institution of XXX Settlement (GUK XXX);
- etc.
For example, when applying for a loan at Sberbank, the full name is indicated - “Public Joint Stock Company Sberbank of the Russian Federation”. In an abbreviated version, you need to write as follows - "PJSC Sberbank". Until August 2015, the financial and credit institution was an OJSC (Open Joint Stock Company). The change in the OPF was caused by a change in domestic legislation and the abolition of the OJSC / CJSC form, and the introduction - PJSC / NAO.
How to write an organizational form in Sberbank
To obtain borrowed funds from Sberbank, a client of a financial and credit institution will need to fill out a special questionnaire. In it, a person must indicate not only his personal data, but also write where he works, what position he holds, what assets he has (in particular: real estate, vehicles), etc. When filling in the line about the place labor activity, you must specify the legal form of the company / institution.
An example of how to fill out a questionnaire at Sberbank to receive borrowed funds
In the submitted sample, the applicant for a loan must fill in the line with the name "Name of the organization, including the organizational form." Since he works for ZARYAD Limited Liability Company, “LLC” is entered in an empty cell (this is legal form) and "CHARGE" (this is an individual name).
How to fill out an application for a loan at Sberbank is shown in the illustration: 
If the client of the bank worked at the Petrovsky State University of Physics and Technology, then in the column it would be necessary to write: FGBOU VO PPGTU. In this case, "FGBOU VO" is the OPF, which, as the "Federal State Budgetary educational institution higher education". "PGFTU" is the abbreviated name of the educational institution.
Here are some more examples:
How to find the exact name of an organization
In order to be sure of the correct spelling of the name of the place of work and its organizational form, Can:
- contact an employee of the personnel department and ask how it will be correct to write the name of the company;
- look in the employment contract / certificate / pass;
- found on the official website of the company/institution (in the section "About the company", "Contact information", etc.).
Filling rules
The execution of the document should be started only after the exact information for filling it out is known. Regardless of what kind of form is being prepared (whether it is a questionnaire for obtaining a library card or a bank loan), the abbreviation of the OPF of the company / institution is indicated first, then a space is made and the name of the business entity is written.
For the convenience of entering information, the input line is often divided into cells. This is done so that you can see where there is a gap between words, and so that each letter is located in its own box. This reduces the risk that, when processing the questionnaire, the specialist will not be able to parse its contents (identify the organization) due to the incomprehensible handwriting of the person filling it out.
The example clearly shows that each letter is in its own cell. OPF is separated from an empty cell. 
In some cases, the ability to write OPF may be required
The most common situations:
- filling out a questionnaire in a medical institution;
- filling out a questionnaire when placing a child in a school / preschool educational institution, etc.;
- for obtaining a consumer loan or for business development;
- when applying for insurance;
- when processing payment orders;
- at the conclusion of contracts for the supply / sale, etc.
In contact with
All existing companies and firms have a certain legal status depending on their shape legal registration. A registered enterprise receives an organizational and legal form that determines the purpose of its existence, methods of disposing of capital and property.
Organization types
Business entities can be commercial and non-commercial types. There are such organizational and legal forms of commercial enterprises: companies, joint-stock companies, partnerships, unitary enterprises and others. Types of non-profit entities: foundations, non-profit partnerships, homeowners associations, political parties, public organizations, institutions, state corporations, Cossack societies, autonomous organizations, public associations and movement. The above non-profit enterprises exist as legal entities. Without a legal status, individual entrepreneurs, financial and industrial groups, representative offices, branches, mutual investment funds can be formed. The first are created for the purpose of making a profit, while non-profit organizations pursue other goals. For example, a training center has one task - to improve the quality of education. The detailed structure of commercial enterprises is discussed below.
Joint stock companies
The most common organizational and legal form of a legal entity is a joint-stock company. There are open and closed joint-stock companies. In the first case, the company's shares are transferred to an indefinite number of persons, while in a closed company securities owned by a strictly limited number of shareholders. Companies have an authorized capital, the minimum amount of which is 1000 minimum wages, as well as founders and a charter. The popularity of this organizational and legal form is explained by minimal risk expected losses incurred by its participants.
Partnerships
Economic entities in the form of partnerships can register their enterprise as a general partnership, a limited liability company or a limited partnership. Participants in a general partnership are liable for its debts with their property. An agreement is concluded between its members. Other contributors who are liable for the obligations of the company in an amount not exceeding the contribution, but who do not participate in the business activities of the company, take part in a limited partnership.
Society
Forms of management in the form of a company with additional or limited liability are also quite common. These companies are created by one or more founders. Due to their contributions, the authorized capital of the company is formed. The limited liability of the company means that its participants are only liable to reimburse the risks of loss in the amount of the value of the invested funds. Additional liability implies compensation for losses by the property of depositors.
Unitary enterprises
Organizational and legal forms of management in the form of a unitary enterprise mean that the property of firms in this case belongs to the state or municipality. For your debts unitary enterprise responds with the property that belongs to him, and it is not entitled to respond with the property of the owner for his debts.
Production cooperatives
Such organizational and legal forms as cooperatives mean that a certain number of citizens (from five people) have voluntarily united to conduct a joint economic or production activities. It can be construction, trade, processing, provision of services, consumer services. Members of the cooperative have shares in the form of part of the property of their association. A production cooperative is called an artel. This form of organization is typical for agricultural enterprises. The difference between an artel and a society is the obligatory labor participation in the work of the firm.
Non-profit enterprises
As already mentioned, the purpose of creating non-profit enterprises is any purpose other than making a profit. For example, a religious community is created to meet spiritual needs. A sports organization is established for the physical development of the population and the promotion of health. With the aim of uniting, reviving and raising the strength of the spirit of the Cossacks, Cossack societies are created.
Non-legal organizations
Individual entrepreneurship does not imply the use of hired labor. From an accounting and tax reporting this form is very simple, because of all the documentation you will only need to submit an income declaration. By creating a mutual investment fund, investors unite by transferring their funds management company. Representative offices and branches perform the main functions of the company, while their range of capabilities is limited. All of the above organizational and legal forms are united by the absence of registration as a legal entity.
What form to choose for the created enterprise
First of all, it is necessary to answer the question of the purpose for which the enterprise is being created: the company is needed to make a profit, that is, of a commercial nature, or its activities will pursue other goals. Next, you need to decide on the role of the creator of the enterprise. To open a company, you need participants, shareholders or founders. An enterprise is always created by the founders, who then move to a different quality - employees or shareholders. Founders commercial organization increase their well-being by earning profits for the firm. In a non-profit enterprise, this can be achieved if the founder is in the position highly paid employee. Although the charter of a non-profit organization does not provide for direct profit, it is possible to earn money by increasing the salary of its employees.
Ways to manage various enterprises
The supreme governing body of all organizations is the meeting of founders, who may be called participants, shareholders. Depending on the form of the enterprise, the number of participants will be different. In joint-stock companies, several people participate in the meeting, the number of which depends on the number of shares in the ownership of the enterprises. The founder may participate in the meeting personally or through his representatives. The governing body is endowed with rights, here are the main ones for all enterprises: changing the charter, appointing and removing CEO, discussion financial activities, appointment of an audit, making a decision on liquidation and reorganization. The meeting of the founders is held as necessary, at least once a year. The executive power of all enterprises is the general director.
Business associations
Created firms can be combined into a larger organizational and legal form. These are concerns, associations, corporations, trusts, combines. So, the association is created on the basis of contracts of several companies by combining the main functions. The association represents the interests of these companies in relations with government officials or other companies. A consortium is created to achieve some goal common to different companies. As soon as the goal is reached, the association stops its work.
An entrepreneur can conduct two types of activities - commercial and non-commercial. Doing commercial activities pursues the main goal - generating income. Non-profit activities have many purposes, the profit from which does not fall under the category of income.
Registration of commercial enterprises involves, first of all, interaction with tax authorities and social services, payments to which are made precisely from income.
There are several organizational and legal forms (OPF) of commercial enterprises, the registration of which will allow the entrepreneur to conduct a completely legal business and be protected at the legislative level.
This individual entrepreneurship(IP), limited liability company, (LLC), joint-stock companies of open and closed type (OJSC, CJSC).
Individual entrepreneur
An individual entrepreneur is the most common and simplest OPF, which can be registered by any capable adult citizen of the Russian Federation. In exceptional cases, stipulated by law, a teenager who has reached the age of sixteen can also register an individual entrepreneur. Registration of IP occurs without the formation of a legal entity.
The advantages of IP are simplified management accounting, no need legal address. To register an individual entrepreneur, the Charter and the presence of authorized capital are not required.
The disadvantage of an individual entrepreneur is his liability to creditors with all his physical property.
Limited Liability Company
One can register an LLC individual and a founding group. To register an LLC, it is necessary to draw up a Charter, an authorized capital, which cannot be less than 10,000 rubles, and a legal address, which cannot coincide with the address of registration, but may not coincide with the address of the location of the actual production.
Members of an LLC are liable within their own share of the charter capital, which terminates with the liquidation of the enterprise.
Joint stock companies
For the registration of joint-stock companies, there are regulations on the amount of the authorized capital, which is between the participants of the joint-stock company through shares. The regulation also exists for the number of shareholders. In a CJSC, the number of participants cannot exceed 50 people. Otherwise, it becomes necessary to change the type of closed to an open joint-stock company or to transform into an LLC. Registration is similar to an LLC, only the registration of a JSC is supplemented by a clause on the issuance of a primary block of shares.
Both LLC and JSC are registered with the formation of a legal entity and can be liquidated or reorganized in accordance with the law. With regard to individual entrepreneurs, only termination of registration is possible; payments of individual entrepreneurs on debts are mandatory until they are fully repaid.
