An enterprise is an autonomous business entity that is established and operates on the basis of existing national legislation for the production of products, the provision of services and the performance of work.
The two main goals of its functioning are to satisfy emerging needs and make a profit. One of the forms of business organization is a municipal enterprise. Its main features will be discussed in this article.
Categories of business entities
According to the Civil Code of the Russian Federation, in fact, there are three large groups of commercial organizations:
- Business company, or partnership.
- Production cooperative.
- Unitary state or municipal enterprise.
The first group includes the largest number of subcategories:
- Full society.
- Limited partnership.
- LTD.
- Society with additional responsibility.
- OJSC and CJSC.
A cooperative is an association of citizens on a voluntary basis for joint economic activity. Each member is personally involved in the work and makes a share contribution there. All members of this organization are jointly responsible. This means that profits are distributed in proportion to the labor contribution. Upon the liquidation of a production cooperative, all remaining property is distributed among employees on a similar basis.
State and municipal enterprise: main features
The last category includes unitary business entities. A municipal enterprise is a special type of commercial organization in which the ownership of the property is not assigned to an individual. Therefore, such a business entity is called unitary. His property is not divided into shares and units, including between people who work on it. According to the Civil Code of the Russian Federation, a municipal enterprise is always unitary. Moreover, this form is characteristic exclusively for similar business entities created by bodies of state or local government.
Nonprofit Organizations
In addition to the listed business entities aimed at profit, voluntary civil associations can be created under Russian law. The state can also establish them. The following main types of non-profit associations are distinguished:
- Consumer cooperative.
- Religious or community organization.
- Fund.
- Institution, including municipal.
- Association or union.
Thus, a municipal institution and a municipal enterprise are the two main ways in which the state can carry out economic activities. It depends on whether it makes a profit, for what purposes it was created, how to call it correctly.
Forms of municipal enterprises
All unitary business entities are usually divided into two types. All government agencies can be attributed to one of them.
The first includes enterprises with the right of economic management. This means that he has a legal opportunity to own, use and dispose of property within the limits established by law. This state of affairs is preferable, because in this case you can independently determine your strategy and set the appropriate goals and daily tasks.
Municipal unitary enterprise with the right of operational management is much more dependent on the state. It can own, use and dispose of all property, but only within predetermined limits. The state body determines its goals and objectives, which are not subject to change. This species has much less autonomy in management.
Creation process and work
The municipal unitary enterprise begins activities by decision of the state body. The Russian government can also create a state-owned enterprise on the basis of property in its ownership. The constituent document is the charter. The state or municipal authority is liable for the insufficiency of the property of the enterprise created by it. The head is fully accountable to the Government of the Russian Federation in the person of its authorized bodies.
Key Points
According to article 52 of the Civil Code of the Russian Federation, a unitary enterprise is a business entity not endowed with the right of ownership of the property attributable to it. Its charter must necessarily include two points:
- The subject and purpose of the activity.
- The size of the authorized capital and sources of its financing.
The company name must necessarily contain an indication of state ownership. For obligations, a unitary enterprise is liable with all property, but cannot be the subject of a pledge or become insolvent as a result of the bankruptcy of its owner. In the Russian Federation, a special federal law is in effect that describes precisely such business entities.
