A modern person often hears these words: "limited partnership", "LLC" and so on. Let's look at the most famous legal types of associations:
1. The first historically established form of commercial organization is a full partnership. It is characterized by the full subsidiary responsibility of its members for their obligations. Participants can be from 2 to 50 business entities. The only partnership document concluded between full partners (participants) is a memorandum of association. The declared authorized capital (its minimum is not determined) must be formed by at least half before state registration.
Any participant is entitled to speak on his behalf, therefore a full partnership does not provide for the usual position of a leader, for example, a director.
2. Limited partnership - similar to the previous form of association, with the difference that in addition to full partners, participants are limited partners (legal entities and citizens), whose duties are limited to making a contribution to the authorized capital. A separate contract is concluded with each of them. Limited partnership does not imply subsidiary liability.
Upon leaving the partnership, the full partner receives a part of the property of the limited partnership, proportional to his share in the authorized capital, the limited partner - only the amount of his contribution.
3. A limited liability company (LLC) is a commercial organization, the participants of which may be from 1 to 50 individuals and legal entities that are not liable for the company's obligations with their property. LLC documents - memorandum and articles of association. The minimum authorized capital is determined in the amount of 100 minimum wages.
The participant has the right to alienate the share in the authorized capital fully paid by him or to withdraw from the LLC with payment to him of a part of the organization’s property proportional to the share in the LLC.
4. The next form - a company with additional liability (ODO) differs from LLC only in the constituent documents provided for and additional (subsidiary) liability of participants for the obligations of the ODO.
5. The joint-stock company is characterized by the division of the authorized capital into a certain number of shares, it may be open (it has the right to freely sell issued shares, a minimum for authorized capital - 1000 minimum wages) or closed (the right to distribute shares among the circle of persons defined by the charter, minimum for authorized capital - 100 minimum wages ) The constituent document is the charter. Before state registration, the authorized capital must be fully formed.
A shareholder is not entitled to leave the company, he can only sell (otherwise alienate) his shares at a negotiated price.
6. A production cooperative (artel) is an association based on the membership of citizens who have made a share contribution for joint economic activity. The constituent document is the charter. A production cooperative cannot have less than 5 individuals who have reached the age of 16 years. Personal participation of members of the cooperative in its activities is mandatory. Members of the cooperative are liable for its obligations. The participant can leave the cooperative, while only the value of the contributed share is paid, similarly as a limited partnership at the exit of the limited partner pays him only the value of the contribution made.
7. Commercial organizations exist in the form of unitary enterprises of two types - state and municipal. They are characterized by the fact that they do not have the right of ownership to the property secured by the sole founder. The commercial organization of a unitary enterprise may be state-owned (the founder bears subsidiary responsibility) or on the right of economic management (the founder's subsidiary responsibility in some cases specified by law).