Organizational and legal forms of entrepreneurial activity are legally established types of structure of a business entity. They characterize the rights, duties and responsibilities of business owners during the operation, liquidation or reorganization of a business entity. The purpose of this article is to introduce the reader to the main forms of entrepreneurship in the Russian Federation.

Main forms of entrepreneurial activity

The legislation of the Russian Federation does not contain a direct indication of the forms of entrepreneurial activity. However, as stated in para. 1 clause 3 of the resolution of the Constitutional Court of the Russian Federation dated February 24, 2004 No. 3-P, citizens, exercising their constitutional rights, themselves determine the area of ​​their economic activity and conduct it individually or jointly with other persons, including by creating commercial organizations as forms of collective entrepreneurship.

Based on the above, the main forms of entrepreneurial activity in the Russian Federation can be considered:

• individual;
• collective.

Table of forms of entrepreneurial activity

Forms of entrepreneurial activity	Individual	Collective
		Statutory		Negotiated
Method of carrying out activities	Directly by an individual registered in the prescribed manner (Article 23 of the Civil Code of the Russian Federation)	Activities are carried out by individuals, legal entities, individual entrepreneurs
		By forming a new business entity - a legal entity (Article 50 of the Civil Code of the Russian Federation)	Based on the concluded agreement, without the formation of a new legal entity (Article 1041 of the Civil Code of the Russian Federation, Article 1 of the Law “On Peasant (Farm) Economy” dated June 11, 2003 No. 74-FZ)

Comparative table of organizational and legal forms of entrepreneurial activity

The following comparative table of organizational forms of entrepreneurial activity will allow you to better understand the pros and cons of specific forms of doing business.

Individual entrepreneurship

Now let’s compare production cooperatives, peasant farm-legal entities, and economic partnerships, which are more rare in circulation.

The simplest form of entrepreneurial activity is sole proprietorship. Individual entrepreneurs are individuals who conduct business on the basis of their property, solely manage it and bear full property responsibility for the results of their business activities.

Efficiency, flexibility and simplicity of business organization are the main advantages of the individual form of entrepreneurship.

However, this form has certain disadvantages:

• It is difficult for an individual entrepreneur to organize large-scale production, since his own financial capabilities and opportunities for attracting investments are limited.
• The combination of different functions (managerial, financial, etc.) by one person often reduces the effectiveness of business management as a whole. The involvement of outsiders or organizations leads to a decrease in the efficiency of management and the income of the entrepreneur himself.
• The presence of legislative restrictions on certain types of economic activities.
• The full property liability of the entrepreneur is the most significant disadvantage of this form of doing business.

Collective forms of business organization

Collective entrepreneurship is an activity organized by various individuals who jointly own and manage a business. By combining their resources, skills and competencies, entrepreneurs act together to increase profits, ensure the stability of the established business, distribute and minimize risks and losses.

The undoubted advantages of collective forms of entrepreneurial activity include the possibility of organizing medium and large business structures, the availability of various types of economic activity and the relative ease of attracting investment.

Collective entrepreneurial activity is represented in domestic legislation by a significant variety of forms, among which are:

• Statutory, created in the form of a legal entity - a new business entity. These are business partnerships and societies, production cooperatives, peasant (farm) enterprises, economic partnerships.
• Contractual ones that do not acquire the status of a new legal entity. These are simple partnerships (joint activities), peasant (farm) enterprises without forming a legal entity.

Corporate forms of entrepreneurship

The most frequently used collective forms of entrepreneurship in practice are the organization of activities in the form of corporations (paragraph 1, paragraph 1, article 65.1 of the Civil Code of the Russian Federation).

Within the framework of corporate forms of entrepreneurial activity, the contributions of their creators are combined with the aim of forming a new business entity - a legal entity. In relation to the newly created business entity, its creators (founders) and subsequently accepted participants become members and have rights of obligation.

The right to participate (membership) in a corporation is the main feature of the concept of a corporate legal entity. This is understood in the Civil Code of the Russian Federation as the right to participate in the management of the activities of a legal entity and to receive a portion of the profit.

All commercial legal entities are classified as corporations, with the exception of unitary enterprises (paragraph 2, paragraph 1, article 65.1 of the Civil Code of the Russian Federation).

As mentioned above, a mandatory feature of a commercial corporate organization is its legal status - the status of a legal entity, from the moment of registration of which the legal capacity of the corporation as a business entity arises.

A simple partnership is a contractual form of collective entrepreneurship

A simple partnership agreement in entrepreneurial activity can be concluded only by commercial organizations and (or) entrepreneurs registered in the prescribed manner. By accepting obligations under such an agreement, entrepreneurs combine their efforts and property without forming a new legal entity.

The procedure for concluding, amending, terminating and other features of a simple partnership agreement (joint activity) is regulated by the norms of Chapter. 55 Civil Code of the Russian Federation.

To organize effective joint activities, participants must:

• create a property base by combining your contributions to common property;
• determine the procedure for managing affairs in the partnership and the procedure for making transactions in the interests of the partners.

An important condition of a simple partnership agreement is the common goal of the association for all participants. This allows us to qualify a simple partnership agreement as one of the legal bases for carrying out business activities, while simultaneously distinguishing this type of agreement from other types of contractual obligations.

Organizational and legal forms of doing business in the Russian Federation

The form of organization of entrepreneurial activity is a way of securing (forming) and using property by an organization, the ensuing legal status and goals of entrepreneurial activity (OK 028-2012 “All-Russian Classifier of Organizational and Legal Forms”).

That is, the organizational and legal form of a business is of decisive importance for its owners, since:

• provides for the mutual rights and obligations of owners in relation to both the business entity they created and other partners;
• determines the possibility and conditions for carrying out entrepreneurial activities in a particular area of ​​the economy, prerequisites for attracting investments;
• establishes the amount of liability of owners for the debts of their business entity.

The list of organizational and legal forms in which collective commercial organizations can be created in the Russian Federation is enshrined in Art. 50 and 65.1 of the Civil Code of the Russian Federation and is closed. They are:

• business partnerships and societies;
• peasant (farm) farms;
• business partnerships;
• production cooperatives.

Business partnerships

Due to the absence of special laws, regulation of the activities of business partnerships is limited to the norms of the Civil Code of the Russian Federation. According to paragraph 3 of Art. 66 of the Civil Code of the Russian Federation, partnerships are divided into:

• For a full partnership. The participants of the partnership (general partners) conduct business on its behalf and are liable for its obligations with all their property. The use of this form poses an increased risk for participants. However, this is precisely what makes a general partnership an investment-attractive form of entrepreneurship.
• Limited partnership (limited partnership). The essence of this legal form of entrepreneurial activity comes down to the fact that in it, along with participants who are unlimitedly liable for the obligations of the partnership (full partners), there are investors (limited partners). The latter do not take part in the activities of the business entity, and their liability is limited to the value of the contributions made. This limited liability of limited partners helps attract more investments to this form of corporation than to a general partnership. And with an appropriate approach to regulating relationships within the partnership and the high responsibility of general partners when conducting business, it can serve as an alternative for limited partners to bank deposits, the securities market or real estate rent.

Limited Liability Company

A limited liability company (LLC) is a business entity whose authorized capital is divided into shares. Characteristic features of LLC:

• pooling of capital;
• limiting the liability of participants for the obligations of the LLC to the value of their shares.

The procedure for the creation, management, liquidation and activities of an LLC is regulated by:

• Civil Code of the Russian Federation;
• Law “On Limited Liability Companies” dated 02/08/1998 No. 14-FZ.

LLC is one of the most common organizational and legal forms of entrepreneurial activity in the Russian Federation. This is due both to the convenience of creating and managing such a company, and to its versatility for various types of business activities.

Serious restrictions on the creation and activities of LLCs exist only in the banking and financial sector, since such a company does not have sufficient transparency for the regulators of these markets (Bank of Russia) and consumers of relevant services, and its ability to attract investments by placing securities or introducing new participants with for the purpose of increasing assets are limited by law. The article “Organizational and legal form - LLC” describes this form of doing business in detail.

Joint-Stock Company

A joint stock company (JSC) is one of the main legal forms of entrepreneurial activity, the characteristic feature of which is the centralization and distribution of authorized capital among the company's participants by issuing shares. The participants of the joint-stock company (shareholders) are not liable for its obligations and bear the risk of losses within the limits of the value of the shares they own.

The functioning of the JSC is regulated by the provisions:

• Civil Code of the Russian Federation;
• Law “On Joint Stock Companies” dated December 26, 1995 No. 208-FZ.

The relationship between shareholders and society is mediated by shares. They give the right to participate in the management of the company, to receive part of the profit (dividends), and are also securities that have a commodity value (clause 2 of Article 142 of the Civil Code of the Russian Federation).

There are public and non-public joint-stock companies:

1. A non-public joint-stock company is distinguished by the fact that its shares are distributed only among participants and are not subject to public sale on the securities market.
2. A public company is a corporation that has the right to publicly offer its shares and securities convertible into shares and to publicly trade them under the conditions established by securities laws. This makes it possible to attract investments from an unlimited number of people, and for investor-shareholders to freely sell their securities by working on the securities market (see the article “What is the difference between a public joint-stock company and an OJSC?”).

Production cooperative

A production cooperative (artel) is an organizational and legal form of entrepreneurial activity in which citizens voluntarily combine efforts and property to conduct joint economic activities. A characteristic feature of a cooperative is the obligation of its members to participate in the activities of the cooperative through their personal labor, although other forms of participation are also allowed (making a share contribution).

The possibility of a legal entity participating in a cooperative is conditioned by an indication of this in the constituent document (Article 106.1 of the Civil Code of the Russian Federation).

The Law “On Production Cooperatives” dated 05/08/1996 No. 41-FZ regulates in more detail the issues of creation, activity and liquidation of a cooperative than in the Civil Code of the Russian Federation.

Production cooperatives can engage in any business activity related to the production of industrial and other products, provision of services (performance of work), trade, etc. (an approximate list of types of activities is in Article 2 of Law No. 41-FZ).

The most important feature of a production cooperative is that its members bear subsidiary liability for the obligations of the cooperative in cases where the property of the cooperative is not enough to pay off debts under its obligations.

Peasant (farm) economy

So, according to Art. 86.1 of the Civil Code of the Russian Federation, a peasant (farm) enterprise (peasant farm), which has the status of a legal entity, is a community of citizens based on their personal participation and combination of property for joint work in the field of agriculture.

Meanwhile, based on the Law “On Peasant (Farm) Economy” dated June 11, 2003 No. 74-FZ, the essence of a peasant farm is a community of persons united by kinship and (or) property, having common property and jointly carrying out agricultural activities. This difference in the legal approach to the definition of peasant farms is primarily due to the fact that the law allowed the implementation of entrepreneurial activities of peasant farms only without forming a legal entity (clause 3 of Article 1 of Law No. 74-FZ). The Civil Code of the Russian Federation has expanded the circle of participants in farms to more successfully and profitably involve peasant farms in economic activities and increase their ability to attract investments.

Thus, at the moment, the peasant farm can function as:

• contractual association of citizens;
• legal entity.

Economic partnership refers to the organizational and legal forms of entrepreneurial activity

Economic partnership (HP) is the only form of commercial corporation not directly regulated by the Civil Code of the Russian Federation (mentioned in paragraph 2 of Article 50, Article 65.1 of the Civil Code of the Russian Federation).

The features of business partnerships are regulated by the Law “On Business Partnerships” dated December 3, 2011 No. 380-FZ. In accordance with the provisions of this legislative act, a HP is a commercial organization created by two or more persons that operates on the basis of a partnership management agreement.

Its activities are managed by partnership participants or other persons within the limits and to the extent provided for in the partnership management agreement. A business partnership makes it possible to conclude a flexible, comprehensive agreement that includes among the parties not only the participants of the company, but also the partnership itself, and also determines the rights and obligations of persons who are not among the participants of the partnership, but who take part in its activities.

A business partnership has similar features to a general partnership, however, in the legal status of the enterprise and its participants there are differences with the named form that do not allow these types of commercial corporations to be completely identified.

Organizational and economic forms of entrepreneurship

The doctrine does not clarify the legal nature of collective entities that do not have a clear organizational and legal form and are united by a common goal (holdings, syndicates, consortiums, alliances, and other types of aggregations of businessmen).

The legal basis for the organization and activities of most of these associations is a simple partnership agreement (joint activity).

An important feature of this kind of organizational and economic forms of entrepreneurial activity is the implementation by independent legal entities of activities aimed at achieving a common goal, under the management and control of the parent organization.

The banking group and banking holding company turned out to be the most regulated in Russian legislation (Article 4 of the Law “On Banks and Banking Activities” dated December 2, 1990 No. 395-I).

In addition, in Art. 11 of the Law “On Protection of Competition” dated July 26, 2006 No. 135-FZ, there is the concept of a cartel. Although it is connected primarily with the prohibition of cartel agreements leading to the consequences specified in the named article of this law.

The definition of a holding can be found in the Decree of the President of the Russian Federation “On measures to implement industrial policy during the privatization of state-owned enterprises” dated November 16, 1992 No. 1392.

Forms of state regulation of business activities

State regulation of business activity is the activity of the state aimed at creating conditions for the normal functioning of the country’s economy. Such regulation is dictated by the clash in the turnover of the private interests of entrepreneurs and the public interests of society.

Forms of state regulation can be classified according to the nature of the state’s influence on certain relations in various sectors of the economy:

• Direct regulation consists of establishing mandatory requirements for business entities.
• Indirect regulation is carried out through the economic interests of entrepreneurs (preferential lending, forecasting, provision of tax benefits, etc.).

An example of an indirect method is the activities of self-regulatory organizations in various sectors of the economy.

Direct forms of state regulation of business activities

State regulation is directly carried out in the following areas:

• the requirements for the activities of bona fide business entities are outlined, prohibitions on various manifestations that do not meet the interests of society are determined;

• sanctions are established for improper business conduct;
• requirements for corporate activity procedures are regulated;
• indicates the types of economic activities to which only business entities created in the established organizational and legal forms can be admitted.

Direct state regulation is not limited to this; norms of proper behavior of business entities and responsibility for their violations are established by regulations of various branches of law.

In particular, among the forms of direct government regulation there are:

• licensing;
• certification;
• certification;
• accreditation.

A special place is occupied by control (supervision), the implementation of which contributes to compliance with the requirements of the law and the balance of private and public interests in the implementation of the rights of entrepreneurs (Law “On the Protection of the Rights of Legal Entities...” dated December 26, 2008 No. 294-FZ, hereinafter referred to as Law No. 294-FZ ).

Notification of the start of business activities

As one of the methods of direct regulation, the state proposes a procedure for making notifications about the start of certain types of activities, which is imperative.

Law No. 294-FZ imposes an obligation on persons carrying out certain types of economic and entrepreneurial activities (Clause 2, Article 8 of Law No. 294-FZ) to inform the industry authorized body about the start of activities. The notification is submitted after the state registration of the business entity and its registration with the fiscal authority (see the article “Notification procedure for starting a business activity”). Unlike registration, a notification is not a means of legalizing business activity, but a condition for the bona fide participation of a business entity in economic turnover, allowing for state control and supervision.

The form of notification of the start of business activities is established by the Rules for the submission of notification..., approved. Decree of the Government of the Russian Federation dated July 16, 2009 No. 584 (clause 6 of the Rules). The notification should be submitted to the relevant authorized body or MFC at the place of the proposed actual performance of work (provision of services).

Thus, the choice of the appropriate organizational and legal form is of great importance for the existence of a legal entity, the possibility of its participation in economic turnover in a particular field of activity, relationships with partners and contractors, and attracting investments. The organizational and economic form of entrepreneurship is no less important, since, despite the virtual absence of legislative regulation of such forms, they serve to unite entrepreneurs in order to develop the economy and maintain a balance of interests of entrepreneurs and society.

Note! An income-generating activity is not always entrepreneurship and requires registration (

Main types of organizational and legal forms of entrepreneurship

1.2.1 Limited liability company (LLC)

1.2.3 Joint stock company

1.2.3.2 Open joint-stock company (OJSC)

1.3 Production cooperative (artel)

1.5 Individual entrepreneur (IP)

Entrepreneurship is a certain activity, a type of activity. Activity, in turn, is a type of human activity. Activity is a form of human existence as a free individual.

Entrepreneurial activity is, first of all, the intellectual activity of an energetic and enterprising person who, owning any material assets, uses them to organize a business. By benefiting himself, the entrepreneur acts for the benefit of society. The transition of the Russian economy to market relations is inevitably associated with the establishment and development of entrepreneurship. Success in entrepreneurial activity is achieved by knowledge, practice, necessary material resources and psychological qualities of the individual. Our government supports small businesses. In 1995, the Law of the Russian Federation “On State Support of Small Business in the Russian Federation” was adopted. And on the basis of this law, by Decree of the Government of the Russian Federation of December 4, 1995, the Federal Fund for the Support of Small Business was formed. According to the Law, the Fund is designated as the state customer of the Federal program of state support for the development of small businesses in the Russian Federation.

: Organizational and legal forms of entrepreneurship

1.1 Partnership

Partnership (partnership) is an organizational form of entrepreneurship, when both the organization of production activities and the formation of authorized capital are carried out by the joint efforts of two or more persons (individuals and legal entities). Each of them has certain rights and bears certain responsibilities depending on the share in the authorized capital and the place occupied in the management structure of such a partnership.

The Civil Code of the Russian Federation (Civil Code of the Russian Federation) developed the previously existing provisions of a simple partnership, formulated and enshrined in its previous edition.

Chapter 55 of Part Two of the Civil Code of the Russian Federation is devoted to aspects of the legal regulation of a simple partnership. According to Article 1041 of the Civil Code of the Russian Federation, under a simple partnership agreement (joint activity agreement), two or more persons (partners) undertake to pool their contributions and act together without forming a legal entity to make a profit or achieve another goal that does not contradict the law. Thus, a business partnership is a commercial organization that owns separate property, with an authorized or share capital divided into shares (contributions).

A partnership can be created:

1) individuals;

2) individuals and commercial organizations;

3) commercial organizations.

There is a general partnership and a partnership of faith.

1.1.1 General partnership

From the point of view of legal consequences, a general partnership belongs to the category of undesirable forms of associations, since it does not imply a limitation of liability. For the obligations of a general partnership, its members, called general partners, are liable with all their property. Responsibility in this case is subsidiary.

Vicarious liability assumes that before making claims against a person who is liable in addition to the liability of another person, the creditor must make claims against the principal debtor. If the latter refuses to satisfy the presented demand or if there is no response to such a demand, the creditor has the right to present such a demand to the person bearing subsidiary liability.

Thus, a partnership is recognized as a full partnership, the participants of which (general partners), in accordance with the agreement concluded between them, are engaged in entrepreneurial activities on behalf of the company and are liable for its obligations with the property belonging to them (subsidiary liability).

Partnerships of this kind are called open trading partnerships in a number of countries (Germany, Austria). In a number of countries, it is also possible to organize another type of partnership - a civil law society (Austria), a civil code society (Germany) or a simple society (Switzerland). They are created to achieve a specific goal and as a result of an informal agreement between several individuals. They do not have the rights of a legal entity. Verifying the credentials of the persons representing them is difficult, since the company is not included in the trade register.

In most cases, general partnerships are formed by legal entities (large enterprises). An agreement on their joint activities in any area can already be considered as the formation of such a partnership. In such cases, neither a charter nor even registration of a partnership is required. Individual entrepreneurs and commercial organizations can be members of only one general partnership.

The partnership agreement determines the powers of each partner, the distribution of profits, the total amount of capital invested by the partners, the procedure for attracting new partners and the procedure for re-registering the partnership in the event of the death of one of the partners or his withdrawal from the partnership. Legally, a partnership ceases to exist if one of the partners dies or withdraws from it; If there is only one participant left in a general partnership, it can be liquidated or transformed.

A clear disadvantage of partnerships is that the decision-making process is difficult in them, since the most important ones must be adopted by a majority vote. To simplify the decision-making process, partnerships establish a certain hierarchy, dividing partners into two or more categories according to the importance of the decision that each partner can make.

1.1.2 Limited partnership

A limited partnership is a partnership in which, along with the participants who carry out business 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 participants - investors (limited partners) who bear the risk of losses, related to the activities of the partnership, within the limits of the amounts of contributions made by them and do not take part in the implementation of entrepreneurial activities by the partnership. The position of general partners participating in a limited partnership and their responsibility for the obligations of the partnership are determined by the rules of the Civil Code of the Russian Federation on participants in a general partnership.

A person can be a general partner in only one limited partnership. A participant in a general partnership cannot be a general partner in a limited partnership. A general partner in a limited partnership cannot be a participant in the general partnership. The business name of a limited partnership must contain either the names of all general partners and the words “limited partnership” or “limited partnership,” or the name (title) of at least one general partner with the addition of the words “and company” and the words “partnership.” on faith" or "limited partnership".

If the business name of a limited partnership includes the name of an investor, such investor becomes a general partner. The rules of the Civil Code of the Russian Federation on general partnership are applied to a limited partnership insofar as this does not contradict the rules of the Civil Code of the Russian Federation on limited partnership.

This form of business organization has some advantages and disadvantages.

Advantages of partnerships.

1. Ease of organization. Like a sole proprietorship, a partnership is easy to form. In almost all cases, a written agreement (partnership agreement) is concluded, and, as a rule, this does not involve burdensome bureaucratic procedures.

2. More financial resources. The unification of several participants in a partnership allows it to expand its financial resources in comparison with the resources of an individual private enterprise. Partners can pool their money together, and their venture usually appears less risky to bankers.

3. Collaborative management. By having multiple partners in the business, a higher degree of specialization is possible. With carefully selected partners, it is much easier to manage the daily activities of the enterprise. Members of the partnership provide each other with time free from business activities, and also have complementary qualifications and views.

The Civil Code of the Russian Federation defines legal entities and individuals who can engage in entrepreneurial activities. In the Russian Federation, it can be practiced by citizens without education, legal entities as individual entrepreneur from the moment of their registration in such capacity, they are liable for their obligations with all the property belonging to them. An individual entrepreneur can be declared bankrupt only by a court decision.

Entity- an organization created by citizens independently or jointly with other legal entities and individuals, which has separate property, which can be either its own or under economic control or operational management. A legal entity is liable with its property for its obligations, can acquire property and non-property rights on its own behalf (the right to use land, rights to inventions, projects, etc.), can bear responsibilities, can be a plaintiff and defendant in court, has its own balance sheet and budget .

Commercial entrepreneurial activity aimed at making a profit is recognized. If entrepreneurial activity is not related to making a profit, then such an organization is non-profit(Figure 2).

Figure 2 – Types of non-profit organizations

Consumer cooperatives– these are voluntary associations of citizens and legal entities to meet the needs of participants by combining share contributions. The responsibility of the members of the cooperative is determined by the charter. Commercial activities are allowed, the income from which is distributed among the members of the cooperative.

Social or religious organizations– voluntary associations of citizens based on common interests to satisfy spiritual or other non-material needs. The participants are not liable for the obligations of the organization, the organization is not liable for the obligations of the participants. Entrepreneurship is permitted, but only in accordance with the purpose of the organization.

Institutions are created to carry out managerial socio-cultural functions, financed by the founders, who are the owners of the property. The institution is responsible for its obligations with its own funds; if they are insufficient, the responsibility rests with the owner. Institutions cannot engage in business.

Funds– organizations that do not have membership are established on the basis of voluntary contributions and pursue socially beneficial goals. Funds are established by individuals and legal entities. The founders are not liable for the obligations of the fund, the fund is not liable for the obligations of the founders. Entrepreneurial activities consistent with the goals of the fund are allowed. The Foundation may create business associations or participate in them.

Associations– these are organizations created by agreement between the founders to protect common interests and to coordinate their activities. The founders of associations retain the status of a legal entity. Associations are not liable for the obligations of members, members are liable for the obligations of the association in the prescribed manner, the association can be transformed into a business partnership, company, or participate in the creation of a partnership or company. The name of the association must contain an indication of the subject of activity (for example, oil production) and the words “union”, “association”, “association”.

A member of an association has the right to leave it at the end of the financial year. The retired member bears subsidiary liability for the obligations of the association for two years from the date of departure.

According to the Civil Code, commercial organizations of the following organizational and legal forms can be created and operate in Russia (Figure 3).

Figure 3 – Types of commercial organizations

1 Business partnerships and societies commercial organizations with an authorized capital (share capital) divided into shares (contributions of founders) are recognized. Property created at the expense of the authorized capital, as well as acquired in the course of activity, belongs to the specified organizations by right of ownership.

1.1.1 Full economic partnerships(with unlimited liability) are organizations whose founders are “general” partners, in accordance with an agreement concluded between them. Members of a general partnership engage in business on behalf of the partnership and are liable for obligations in the amount of all property of the partnership.

The company name must contain the names of all founders and the words “full partnership” or the name of one (several) founders and the addition of the words “and co” or “full partnership”.

The management of a general partnership is carried out by the general consent of all participants, and in cases provided for by the constituent documents, by a majority vote of the founders. Each participant has one vote, unless otherwise provided by the constituent documents. Profit or loss is distributed in proportion to the share of the founders in the authorized capital, unless otherwise provided in the constituent document. If, as a result of losses incurred, the value of the property of a general partnership becomes less than its authorized capital, then the subsequently received profit is not distributed among the participants, but is spent on the acquisition of property.

1.1.2 Business partnerships on limited basis (limited) Along with “full” partners who carry out activities on behalf of the partnership and are liable for its obligations with all their property, they include limited partners who bear the risk of losses only within the limits of the contributions made and do not take part in business activities.

The company name must contain the names of all general partners and the words “limited partnership” or the name of one (several) general partners with the addition of the words “and co” and “limited partnership”.

The management of a limited partnership is carried out by “general partners”. Limited partners have the right to receive a portion of the profits in accordance with the constituent documents. At the end of the financial year, limited partners can leave the partnership and transfer their contribution (or part of it) to third parties.

1.2 Economic societies.

1.2.1 Joint stock companies(JSC) can be open (JSC) and closed (CJSC) (Table 1). The type of company is indicated in the charter and name. A joint stock company can be created by re-establishing or reorganizing an existing legal entity (merger, division, transformation, privatization). The authorized capital (AC) is made up of the par value of shares acquired by shareholders. The size of the authorized capital for an OJSC is at least 1000 minimum wages, for a closed joint stock company - at least 100 minimum wages as of the date of registration of the company.

Table 1 – Features of open and closed joint stock companies

OJSC

Company

1 Shareholders may alienate their shares without the consent of other shareholders. 2 Has the right to conduct an open subscription for shares and their free sale. 3 Has the right to conduct a closed subscription for shares if this is provided for by the charter and the decision of the closed meeting of shareholders on the placement of shares. 4 The number of shareholders is not limited.

1 Shareholders have a pre-emptive right to purchase shares sold by another shareholder in the manner prescribed by the charter. 2 Shares are distributed only among the founders or other established circle of persons. 3 Open subscription to shares is not allowed. 4 The number of shareholders is no more than 50 (there may also be legal entities), except for companies created before 1.01.96. Otherwise, the CJSC will be transformed into an OJSC.

Shares of a joint stock company can be ordinary, preferred and cumulative.

Preference shares may be of several types. The total par value of preferred shares is not more than 25% of the value of the charter capital. Possible set of rights for preferred shares:

1) the dividend is determined (in a fixed amount, as a percentage of the nominal value, in another order);

2) the liquid value is determined (at which the issuer undertakes to repurchase these shares, in a fixed amount, as a percentage of the par value);

On issues of reorganization or liquidation of the company;

To limit the rights of owners of shares of a certain type;

If dividend payments are determined and there are none;

If the annual meeting of shareholders, which was supposed to decide on the payment of accumulated dividends, decided not to pay them or not pay them in full. The right to vote remains until full payment is made.

The charter of a joint-stock company may provide cumulative shares. Dividends on cumulative shares or a certain part of them in case of non-payment on time are accumulated and paid subsequently.

Joint-stock companies may create branches, representative offices that are not legal entities, subsidiaries and dependent companies. Branches and representative offices act on behalf of the JSC, and the JSC is responsible for their activities.

The supreme management body of the JSC is the General Meeting of Shareholders. During the period between meetings – the Board of Directors. Management of current activities is carried out by the executive body, which can be individual (director, general director, president), or collegial (Board, executive commission).

1.2.2 Limited Liability Company(LLC) is established by one or more persons. The participants of the LLC are liable for its obligations within the limits of their shares. The business name must contain the name and words LLC.

The number of participants in an LLC must be less than that established by law for a closed joint stock company. Otherwise, the LLC will be transformed into a JSC within a year or liquidated through a court order.

The highest governing body of the LLC is the meeting of founders. The executive body may be collegial or consist of one person, and the manager (director) may not be the founder.

1.2.3 O companies with additional liability. Participants in such a company jointly and severally bear subsidiary liability for the obligations of the company with all their property in the amount of a multiple of the value of their contributions. The company name must contain the title and words with “ additional responsibility."

2Production cooperative must have at least 5 members. Members of the cooperative bear subsidiary liability for the obligations of the cooperative. The full name must contain the words “production cooperative” or “artel”.

The charter of the cooperative is approved by the general meeting of its members and contains the following sections: name; location; management procedure; amount of contributions; procedure for distribution of profits and losses, liability for debts.

3 Unitary enterprises (UE)– municipal/state enterprises that do not have property rights in relation to the property assigned to them. The corporate name of a unitary enterprise must contain an indication of the owner.

3.1 UE on the right of economic management characterized by the fact that their property is in municipal or state ownership. Such enterprises are created by decision of the owner, while the owner is not responsible for the obligations of the enterprise.

3.2 Property UE with the right of operational management is state-owned and created by decision of the Government of the Russian Federation. The enterprise is liable for its obligations with all its property and is not liable for the obligations of the owner. The Russian Federation bears subsidiary liability for the obligations of a state-owned enterprise.

The main forms of business enterprises in developed countries are sole proprietorship, partnership and corporation.

Private enterprise is an economic entity that is engaged in production or other activities, the owner of which independently conducts business, manages in its own interests, receives all profits, and bears personal responsibility for all its obligations.

The owner of the company has the right to hire and fire workers, enter into agreements and contracts. The advantage of this form is the simplicity of its organization and management, freedom of action and a fairly strong economic situation (one person receives all the profits). The disadvantages are limited financial and material resources, the lack of a developed system of internal specialization of production and management, and unlimited liability.

Partnership- an enterprise organized by several persons who jointly own and manage it. An analogue of a Russian partnership, it can be with limited and unlimited liability (general partnership).

The advantages consist in facilitating the resolution of financial issues related to starting and continuing business activities, in the use of division of labor and specialization. The disadvantage is the separation of functions, as a result of which inconsistency of actions and incompatibility of interests are possible, which can lead to disintegration.

Corporation- an enterprise where the liability of each owner is limited to his contribution (share). By purchasing shares of a corporation, individuals become its owners and, receiving a portion of the income in the form of dividends, risk only the amount they paid to purchase the shares.

The corporation exists independently of its owner-shareholders, which means a certain stability. The disadvantage is that there are certain opportunities for abuse, because small and medium-sized owners cannot exercise any effective control over the activities of the corporation.

What distinguishes corporations from Russian joint-stock companies is the presence of two documents: in addition to the articles of association, internal regulations (by-laws) are drawn up, which supplement and detail the charter. Small corporations in the United States are exempt from income taxes.

Widespread in the USA sole proprietorships(sole proprietorship), operating in the field of retail and small wholesale trade, in the service sector. The liability of an entrepreneur is not limited; a lawsuit can be brought against all of his property. This form is chosen mainly by small entrepreneurs. The only official document for registration is the tax return. But some states require an administration license to conduct a certain type of business activity.

Small and medium-sized US enterprises form partnerships that do not pay taxes (taxes are paid on the income of participating entrepreneurs). Partners additionally fill out a special form in their individual income statements, which sets out their share in the profits and losses of the partnership, and submit it to the tax authorities. Creation of partnerships requires a certificate regarding the type of business, partnership members, capital structure, etc.

In recent years, limited liability companies (LLC) have become popular in the United States - this is a hybrid, combined legal structure that combines the features of a corporation (limited property liability of members) and a partnership (in the field of taxation).

Control questions

1 What business activity is called commercial?

2 Which organizations are considered non-profit?

3 What are the features of open and closed joint stock companies?

4 What set of rights can preferred shares have?

5 What is the difference between a limited liability company and an additional liability company?

6 What is a private enterprise?

Related information.

Entrepreneurship is carried out in certain organizational and legal forms. Which form to choose depends on many factors: the operating environment, the financial capabilities of business entities, the comparative advantages of one or another form. Each country has its own legislation on organizing business. At the same time, there are organizational and legal forms of entrepreneurial activity that are typical for world practice. These include: general and limited partnerships, limited liability partnerships (companies), joint stock companies, state enterprises Kruglova N.Yu. Economic law: textbook. allowance 2nd ed., rev. and additional - M.: RDL Publishing House, 2001. - P. 15-18.

The organizational and legal form of legal entities is a concept that has recently entered into legislation and practice and is widely used to characterize organizations - independent subjects of economic activity, including business. It concentratedly embodies the essential organizational and legal features that are common to legal entities and business organizations of various types. These signs can be summarized into two groups.

The first reflects the organizational connection of any legal entity with law and legislation. Firstly, a legal entity can be created only in accordance with the procedure established by law. Violation of the established procedure deprives the activities of a legal entity of due legal consequences. Therefore, before entering into business contacts with a particular organization, you should make sure that the procedure for its establishment is followed. Secondly, any legal entity can be formed only in those organizational and legal forms established by law. An exhaustive list of types of organizational and legal forms of commercial organizations is given in Part One of the Civil Code of the Russian Federation (business partnerships and societies, production cooperatives, unitary enterprises). Commercial organizations cannot be created in other organizational and legal forms. The organizational and legal forms of non-profit organizations, along with the Civil Code (Articles 116-123), can also be determined by other federal laws (for example, the Federal Law “On Non-Profit Organizations”). When entering into business relations with a legal entity, it is necessary to find out whether its organizational and legal form complies with those provided for by law.

Thirdly, a legal entity is authorized to act only within those limits (frameworks) that are outlined by law for the type of organizational and legal form to which this legal entity belongs. Fourthly, all legal entities, no matter what legal form they belong to, are subject to the requirement to comply with the legality of N.Yu. Kruglov in their activities. Economic law: textbook. allowance 2nd ed., rev. and additional - M.: RDL Publishing House, 2001. - P. 19.

The second group of characteristics of the organizational and legal form reflects the main thing in the characteristics of a legal entity as a participant in economic and entrepreneurial relations - its property status. Firstly, one or another type of organizational and legal form gives a clear answer to the question of the genesis, origin of the property on the basis of which this legal entity was created and operates, and, accordingly, the basis for its ownership of this property. For example, for the property of legal entities - commercial organizations in the form of state and municipal unitary enterprises, their founders retain ownership rights. The property of enterprises is under the right of economic management or operational management. Other commercial and non-profit organizations, in addition to institutions, are the owners of property, either contributed in kind as contributions by their founders, or acquired by these legal entities for other reasons.

Contributions to the property of a business partnership (full and limited) and a business company (limited, additional liability and joint stock) can be money, securities, other things or property rights or other rights that have a monetary value. Such a contribution cannot be an object of intellectual property (patent, copyright, including computer programs) or “know-how”. However, the right to use such an object, transferred to the company in accordance with a license agreement, can be recognized as a contribution. The constituent documents may contain provisions indicating that the founder did not transfer property in kind to the authorized capital, but only the rights to own and use it. In this case, the business company does not acquire ownership rights to this property.

Secondly, the organizational and legal form reveals the internal property relations of legal entities: the composition of the property, what relation the founders (members) of the legal entity have to it, how the property is disposed of. Some legal entities have an authorized capital (limited and additional liability companies, joint stock companies), others have an authorized capital (state and municipal unitary enterprises), others have share capital (general partnerships and limited partnerships), and others have share contributions (industrial and limited partnerships). consumer cooperatives) Kruglova N.Yu. Economic law: textbook. allowance 2nd ed., rev. and additional - M.: RDL Publishing House, 2001. - P. 23. The authorized capital of limited and additional liability companies is divided into shares, the size of which is established by the constituent documents, and the authorized capital of joint-stock companies is divided into a certain number of shares. Property owned by production cooperatives is divided into shares of its members in accordance with the charter of the cooperative. The property of state and municipal unitary enterprises is indivisible and cannot be distributed among deposits (shares, shares), including among employees of the enterprise.

Management of the activities of general partnerships and limited partnerships, including the disposal of property, is carried out, as a rule, by the general consent of all participants (general partners). The procedure for disposing of the property of business entities and production cooperatives is determined by their constituent documents - charters and (or) constituent agreements. The corresponding powers are vested in general meetings of participants (members) of companies, executive bodies (collegial and (or) individual), and other management bodies.

Thirdly, the organizational and legal form clearly defines with what property the legal entity is liable for its obligations. A general rule has been established that legal entities, except for owner-financed institutions, are liable for obligations with all the property they own. Participants (general partners) of business partnerships, in addition, are liable for the obligations of the partnership with their own property.

In relation to business companies and unitary enterprises, the legislation especially emphasizes the role of the authorized capital (fund), which determines the minimum amount of property that guarantees the interests of their creditors. The lower limit of the authorized capital is established by law. In accordance with the Federal Law on Joint Stock Companies, the minimum authorized capital of an open joint-stock company must be at least 1000 times, and for a closed company - at least 100 times the minimum wage. If at the end of the second and each subsequent financial year the value of the company's net assets is less than the authorized capital, the company is obliged to declare and register in the prescribed manner a decrease in its authorized capital. If the value of these assets becomes less than the minimum amount of authorized capital determined by law, the company is subject to liquidation. For limited and additional liability companies, the authorized capital cannot be less than 100 minimum wages. Decree of the President of the Russian Federation dated July 8, 1994 No. 1482 “On streamlining the state registration of enterprises and entrepreneurs on the territory of the Russian Federation” determined that the size of the authorized capital of a state or municipal enterprise should not be less than an amount equal to 1000 times, and for entrepreneurial organizations of other organizational legal forms - 100 times the minimum wage per month See: Collection of Legislation of the Russian Federation, 1994, No. 11, Art. 1194..

Knowledge of the organizational and legal features that determine the form of legal entities allows you to competently navigate the entire diversity of participants in economic and business relations. With the help of these characteristics, it is possible, regardless of the specific economic activities of legal entities, to clearly determine the features of their legal capabilities, duties and legal liability, to compare different legal entities with each other based on their inherent general parameters and, based on all this, to draw reasonable practical conclusions. For example, citizens, themselves participants in economic and business relations, can thus, depending on the goals pursued, choose more reliable business partners, and state authorities and local governments can more effectively monitor compliance with legislation by legal entities of various organizational and legal forms, more effectively establish interaction with them. If the organizational and legal form ceases to satisfy the interests of a legal entity, this does not entail the need to liquidate such entity and form a new one.

The organizational and legal form chosen during the creation of a legal entity can subsequently be changed through its reorganization.

Russian enterprises can operate within a wide range of organizational and legal forms. The legislation of the Russian Federation allows citizens to engage in business in statuses optimized for the specifics of production, turnover, number of co-founders and the need for additional financing. What are the features of organizational and legal forms of doing business in Russia? How to choose the optimal format for carrying out commercial activities?

Classification of organizational and legal forms

Russian entrepreneurs are often faced with the problem of choosing the optimal organizational and legal form of doing business. What options do they typically explore? There are not many of them. The organizational and legal forms of enterprise activity, which are provided for by Russian legislation, may include:

• activity as an individual entrepreneur (IP);
• business in the form of an LLC;
• activities in the format of a joint stock company;
• joint cooperation in the form of cooperatives, peasant farms, partnerships.

It may be noted that in rare cases, it is also permissible to conduct a business in the status of an individual without registering as an individual entrepreneur. But even if there were more opportunities for this, such activities, as a rule, are less profitable for the entrepreneur from a tax point of view. Therefore, the organizational and legal forms of entrepreneurial activity that we listed above are more preferable. Let us consider in more detail the essence of each of them.

IP

A fairly popular organizational and legal form of doing business among Russian entrepreneurs is the individual entrepreneur. The prevalence of this option is mainly due to the ease of state registration. In order to become an entrepreneur, a citizen must collect very few documents. The costs associated with registering as an individual entrepreneur are also small. It is not necessary to have a seal. There are no legal requirements to open a bank account (although this is, of course, recommended for ease of interaction with suppliers and clients).

The peculiarity of this form of doing business is that an individual entrepreneur is not a legal entity. In practice, this means, for example, that he is personally responsible for his obligations. However, individual entrepreneurs can pay taxes in modes that are typical for legal entities.

One of the advantages of running a business as an individual entrepreneur is that a person, having paid tax within the framework of the chosen scheme, can subsequently dispose of the remaining amount at his own discretion. It is very easy, therefore, to withdraw proceeds for personal use in order to spend them in any desired way.

Another useful aspect of conducting business in this status is the minimal burden on individual entrepreneurs in terms of reporting. Other organizational and legal forms of enterprises require regular interaction with the Federal Tax Service and other structures. For individual entrepreneurs, in some cases, it is enough to send a declaration to the tax service once a year, as well as several documents relating to the formation of staff and accounting issues.

Any citizen of the Russian Federation who is already 18 years old can conduct business as an individual entrepreneur. Subject to the approval of the activity by their parents, Russians from the age of 14 can also engage in business. If a person is in the civil service, then he has no right to register as an individual entrepreneur.

An individual entrepreneur can hire other people, issue work books for them, pay wages, and create work experience for hired employees. A sole proprietor always owns his business solely. You cannot give or sell your share in the enterprise to someone - this organizational and legal form does not allow this. And therefore, many Russian businessmen willingly engage in activities as individual entrepreneurs.

However, working in such a status has a number of disadvantages. For example, individual entrepreneurs must in any case pay fixed insurance contributions to the Pension Fund, Social Insurance Fund and Compulsory Medical Insurance Fund. This is usually not a problem if the entrepreneur has good turnover: the corresponding fees to the state treasury are counted as part of taxes and are therefore not noticeable. But even with zero revenue, the individual entrepreneur must pay them. And if, for example, a person for some reason does not engage in business for some time, he is nevertheless obliged to transfer contributions to the treasury. Even if he is employed somewhere and the employing company transfers the required percentage from his salary to the Pension Fund, Social Insurance Fund and Compulsory Medical Insurance Fund, this obligation remains.

Business in the form of an LLC

Another common organizational and legal form of business in the Russian Federation is a limited liability company. It can be established by one citizen or several, but the number of participants should not exceed 50 people. An entrepreneur, owning an LLC, does not bear personal responsibility for obligations, unlike an individual entrepreneur (not counting contributions to the authorized capital). Also, participants in societies of this type are not required to pay contributions to the Pension Fund, Social Insurance Fund and Compulsory Medical Insurance Fund.

An LLC is a full-fledged legal entity. Its state registration is somewhat more complicated than in the case of an individual entrepreneur. An authorized capital of at least 10 thousand rubles, in most cases a bank account, and a seal are required. Reporting for LLC owners is usually more complicated than for individual entrepreneurs.

One more nuance - you cannot simply withdraw proceeds, as in the case of an individual entrepreneur, even if tax has been paid on it. You will have to formalize it as dividends or even in the form of a salary (with which, in turn, it is necessary to transfer contributions to the Pension Fund, Social Insurance Fund and Compulsory Medical Insurance Fund).

LLC specifics

This organizational and legal form of a legal entity, such as an LLC, is among the most common in the Russian Federation. Therefore, let's look at its specifics in more detail.

We noted above that the number of co-owners of an LLC cannot exceed 50 people. If more people want to join the business, then it will be necessary to transform the LLC into other organizational and legal forms of entrepreneurship - a public or ordinary joint stock company. If the co-founders do not carry out the appropriate procedure, the LLC may be liquidated by the court.

The authorized capital of the LLC, as we noted above, is 10 thousand rubles. Many companies, of course, increase it. But this must be done carefully. If the value of net assets, due to market or other reasons, turns out to be lower than the amount of the authorized capital, then it will have to be reduced - these are the requirements of the law. And if the net assets turn out to be less than 10 thousand rubles, then the company must be (also due to the provisions of the law) liquidated. LLC can be transformed into other organizational and legal forms of entrepreneurship.

It is possible for one of the co-founders to leave the organization through the alienation of his share in favor of other owners (with subsequent compensation), but only if this is provided for by the company’s charter. It is also possible to sell the relevant part of the business. The considered organizational and legal form of a legal entity does not imply the exit of the sole founder, but in this case he can sell the business to another citizen or company. In the event of a sale of a share in a company, the pre-emptive right to purchase belongs to other members of the company. The period during which it is valid is determined by law and the organization’s charter.

Joint-Stock Company

This organizational and legal form of activity, such as a joint stock company, is mainly in demand by those entrepreneurs who plan to develop a large business. A joint-stock company is a commercial structure that also has an authorized capital, but it is issued in the form of shares, which certify the obligatory nature of the rights of the company's participants. Therefore, undergoing state registration and maintaining records within a JSC is somewhat more difficult than under an LLC, not to mention an individual entrepreneur.

JSCs, according to Russian legislation, can be ordinary and public. It can be noted that until 2014 in Russia there were such organizational and legal forms of organizations as closed and open joint-stock companies. Then, amendments were made to the regulatory legislation, according to which JSCs began to be classified into ordinary and public.

Public and ordinary joint-stock companies

Such an organizational and legal form as a public joint stock company, according to the Civil Code of the Russian Federation, is characterized by the following features.

• Firstly, shares and other securities that are issued by the organization, are placed publicly (through open subscription), and are also traded on the market in accordance with the provisions of legal acts regulating the circulation of relevant trading instruments.
• Secondly, the founders of a joint-stock company have the right to indicate public status in the organization’s charter, as well as in its corporate name, even if its activities do not meet the first criterion.

Other JSCs are not considered public. That is, they are simply called societies. But if the plans of the organization’s leaders are to issue shares, which will then be publicly subscribed, then they should still indicate the status of a public company in the charter.

Specifics of statutes

Reforms in civil legislation that took place in 2014 predetermined some features of the drafting of organization charters. For example, two different organizational and legal forms of enterprises, LLC and JSC, may have uniform constituent documents, since their only legal form has become a charter, which can be developed in accordance with the recommendations of state registration authorities.

LLC and JSC, according to the legislation of the Russian Federation, belong to the same category of organizations - business companies. Following the reform carried out in 2014, their status, as some experts note, has become very similar due to the establishment of a single form of constituent document.

Partnerships

The Civil Code of the Russian Federation also provides for other types of organizational and legal forms of business. For example, partnership. What is unique about this format of business activity? The definition of partnerships and business entities (LLC and JSC) is contained in the same provisions of the Civil Code of the Russian Federation. That is, the organizational legal form of activity under consideration is a legal entity that has an authorized capital.

Partnerships are either full or limited. In organizations of the first type, people are engaged in business and bear subsidiary liability for emerging obligations. Limited partnerships (limited partnerships) are organizations that include investors (or limited partners) who are liable to the extent of their contributions.

Consumer cooperatives

The Civil Code of the Russian Federation provides for such a form of doing business as a consumer cooperative. Organizations of this type are voluntary associations of individuals or legal entities within which the property share contributions of participants are consolidated. How the corresponding amounts should be paid is determined by the charter of the consumer cooperative. Participants of the organization bear subsidiary liability for arising obligations within the limits of the unpaid share of the additional contribution.

Producer cooperatives

The organizational and legal forms of organizations provided for by the Civil Code of the Russian Federation include such structures as production cooperatives (also called artels). These are associations of individuals (but the charter may also provide for the participation of legal entities) for the purpose of organizing joint production, processing or marketing of various types of products, performing work, providing services, and conducting trade. Personal labor participation of citizens is assumed. Members of a production cooperative, as a rule, agree on the payment of share contributions. The liability of the organization's participants is subsidiary, within the limits determined by law and the charter.

Peasant farms

Organizational and legal forms of entrepreneurial activity may be associated with the agricultural industry. You can conduct business in this area through a variety of statuses. The Civil Code of the Russian Federation provides, in particular, for the possibility of organizing joint peasant farming by citizens of the Russian Federation.

This type of joint activity of farmers involves the creation of a legal entity in the form of a voluntary association, which is based on joint work, as well as property contributions of participants. The peculiarity of a peasant farm is that all property within this organization is jointly owned by the farmers who founded it. According to the Civil Code of the Russian Federation, a person can be a member of only one farm association. Citizens conducting joint activities within the framework of this organizational and legal form bear subsidiary liability for emerging obligations.

Choosing a form of doing business

What organizational and legal form might be optimal? If a person runs a business independently, does not hire people or forms a small company staff, then he can register as an individual entrepreneur. In this status, you can work with a minimum amount of reporting, without being distracted by bureaucracy and completely devoting your time to work. There are no problems with withdrawal of proceeds.

If a citizen runs a joint business with partners, then an LLC may be the best option. Once the company's turnover has grown, it would be nice to increase it further by issuing shares. In this case, you can pay attention to other types of organizational and legal forms of activity - a joint-stock company with securities by open subscription or a non-public joint-stock company.

In order to effectively consolidate labor, entrepreneurs can unite into production or consumer cooperatives or partnerships. If citizens are engaged in farming activities, then the joint establishment of a peasant farm may well be optimal for them.

These are the main types of businesses provided for by the legislation of the Russian Federation. Other organizational and legal forms of organizational activity, such as, for example, associations or NPOs, also allow you to engage in commerce. Government organizations are not prohibited from making profits either. However, taxation in the case where organizational and legal forms of organizational activity are involved is usually higher than when registering a legal entity, the status of which is more typical for a business.