A commercial enterprise is an organization that has separate property, acts on its own behalf in civil circulation and is responsible for its own obligations. The activities of companies are regulated by the Civil Code and industry laws.
Signs
The most complete definition of a legal entity is contained in Art. 48 GK. In accordance with it, an enterprise acquires rights, bears obligations, may act in court as a plaintiff or defendant. All companies should have an estimate, separate property, an independent balance sheet. The company is liable for the material assets . The property may be in the enterprise in operational management, ownership or economic management. In analyzing the norm, thus, the key features of economic entities are highlighted. They are internal, inherent characteristics that exist in the complex. Their common presence will be considered sufficient to recognize the enterprise as a subject of civil rights. In accordance with Art. 48 of the Civil Code, it is necessary to highlight such basic features of firms as organizational unity and property isolation. Moreover, the latter characteristic, as a rule, is a priority. Let us further consider in detail what constitutes the property of a legal entity.
The characteristic of material values
Separated property - these are objects that are managed only by an economic company. They are separated from material values owned by participants / founders. Their presence is a prerequisite for the implementation of the enterprise. In h. 1 Article. 48 provides a requirement that applies to separate property. This is a provision on the obligation of an economic entity to take material values into account in documentation. There are special reporting forms for enterprises and institutions. So, the latter are required to make an estimate. As for other commercial enterprises, they must account for separate property in an independent balance sheet.
Specifics of accounting
The independence of the balance indicates the completeness and completeness of reflection of property in the possession of the enterprise. Meanwhile, such accounting may be kept by a branch or representative office of the company. In this case, they talk about a separate, not an independent balance. Such documentation does not include all indicators by which the sources of capital formation and the directions of its investment are characterized throughout the enterprise as a whole. This information is reflected only in the independent balance sheet.
Company Responsibility
Separate property - these are the tangible assets that the company uses when paying off its obligations. The legislation establishes an important condition for liability. So, in the norms there is a sign of independence. It excludes the liability of the enterprise for the debts of its members. Accordingly, the founders do not participate in the repayment of the obligations of the company.
Subject Capabilities
As an integral feature of a commercial enterprise is its ability to bear responsibilities and acquire rights. Thus, the company acts as an independent subject of civil law relations. In particular, the company concludes transactions on its own behalf, acts as a defendant / plaintiff in court.
conclusions
Analyzing the provisions of Art. 48 of the Civil Code, we can conclude that the norm contains 3 mandatory features of an economic entity:
- Economic. He assumes that the company has separate property. This, in turn, means that the enterprise has created the material basis for conducting activities and paying off obligations.
- Substantive. It indicates the ability of economic entities to bear responsibilities, to acquire property and non-property personal rights.
- Legal. This symptom indicates the company's ability to act as a defendant / plaintiff in litigation in court.
Property Management
As mentioned above, the key sign of an economic entity is the presence of material values. An enterprise that is established in accordance with the procedure established by law and which has separate property in its ownership shall be recognized as a full participant in civil turnover. However, ownership is not the only reason that a company can dispose of material values. The company, in addition, may carry out economic management or operational management of property. In these cases, however, the ability of the economic entity to use material assets is limited to a certain extent. So, for example, enterprises that act as legal owners of certain objects may sell property. Subjects with limited rights to material values cannot make transactions with them.
The impact of the isolation of property on accounting
The current civil law provides for the possibility of forming limited liability companies, as well as enterprises ensuring the fulfillment of obligations assumed by the material assets at their disposal. This position consolidates the characteristics of the company that have a direct impact on the methodology of accounting for economic events. These signs are the self-responsibility and property isolation mentioned above. Civil law does not exist by itself. Its provisions are intended for use by subjects in practice. The accounting methodology is specifically dependent on the principle of isolation. In accordance with it, at the time of opening the company, based on the registered constituent documentation, a posting is formed. It reflects the occurrence of a separate property of the enterprise.
The composition of material assets
When analyzing activities, reporting, all types of property of the enterprise are taken into account. These include both objects having a physical expression, and intangible assets. The latter, for example, include such types of property as rights to things or the results of intellectual work, as well as obligations arising from their use. All this is an asset of the enterprise. They are under the control of the company and must be profitable.
Receiving additional funds
Legal entities are created to carry out specific activities in order to generate income. Meanwhile, in any enterprise, a situation may arise when own funds for doing business are not enough. In these cases, management may decide to take a loan. It involves obtaining financing on certain conditions. Regardless of the type of loan, the company must prove its solvency. As one of the ways to confirm it is the provision of any material values. So, for example, money can be taken on the security of real estate, equipment, securities, etc. Material assets can also be sold. The sale of property, as well as the receipt of a loan, must be documented.
Loan agreement
The agreement must specify the conditions for the provision of financial resources:
- Timing and method of transferring money.
- Description of facilities provided for the period of using finances.
- The procedure in accordance with which the funds taken on the security of real estate or other property should be returned.
- Risks, dispute resolution rules. This section, including, should contain an indication of force majeure circumstances.
The agreement may be concluded as unilaterally binding. It assumes the arrears of debt of only one party to the transaction after signing the contract. The agreement may also be real. He is considered to be concluded only after the provision of funds. The agreement spells out all the nuances regarding the use and storage of the pledged facility.
Business expansion
The opening of additional offices, representative offices and branches is a normal practice of developing companies. If the units are territorially isolated, then they are charged with the duty to deduct fees and taxes in the regions of their location. It should be noted that the bodies of the Federal Tax Service will not register the branch or representative office, but the main office of the enterprise. He will be responsible for the taxation of separate units.
Separate division property tax
The procedure in accordance with which the mandatory payments are deducted to the budget of the representative office, additional office or branch will depend on a number of factors. The value will have:
- The presence or absence of own balance.
- Legal status.
- Types of fees and taxes.
- Absence or presence of a bank account.
Property tax is deducted separately at the location of the main office and separate divisions, if the latter keep their own accounts and have assets reflected in it. Payment for tangible assets that are registered with the central company is calculated and transferred in advance. They are sent to the inspection of the Federal Tax Service, in which the company is registered (registered). A similar rule applies to separate units. For each representative office / branch / additional office, its own tax base is calculated. It is multiplied by the tax rate established in the region in which the separate division operates. The calculated amount is sent to the regional budget.
Conclusion
In legal theory, Roman law acts as a source of the principle of property isolation. In accordance with its standards, initially enterprises were formed as partnerships. In them, property and liabilities were not separate. However, the situation subsequently changed. In European civil law, the "personification theory" was the basis for the principle of property isolation. It was proposed in the Middle Ages by Pope Innocent IV. Subsequently, other approaches arose to determine the essence of the organization and the content of the principle of isolation of its property. Over time, the rule of law improved and adapted to the conditions existing at a particular historical stage. As a result, modern legislation defines the key features of a commercial organization, highlighting the isolation of its property as a priority. It acts as a prerequisite for creating an enterprise, obtaining legal personality. A company that possesses material values may accept obligations. Otherwise, having no property, the organization will not be able to confirm its solvency, conduct normal business activities and make the desired profit. The law clearly separates the material assets of the enterprise from objects belonging to its participants (founders). Accordingly, debt liability is differentiated.