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  • The system of legal forms
    The system of legal forms of business activities applied in Russia and instituted primarily by the Civil Code of the Russian Federation includes 2 forms of business activity without forming a legal entity, 7 types of commercial organizations and 7 types of non-commercial organizations.

    Business activity without forming a legal entity can be carried out in the Russian Federation both by private citizens (individual entrepreneurs) and within the framework of a simple partnership – the joint activity agreement signed by individual entrepreneurs or commercial organizations. The most essential feature of simple partnership is joint and several liability of the participants under all common commitments. The profit is shared on a pro rata basis in accordance with the deposits contributed by participants (except as otherwise provided by the contract or other agreement), which can be not only tangible and intangible assets but also internal personal qualities of participants.

    The system of legal forms

    Pic. 1.1 – Legal forms of business activities in Russia.

    Legal entities are divided into commercial and non-commercial ones.

    Commercial organizations are those which are aimed at profit making as their primary objective. According to the Civil Code of the Russian Federation, these are business partnerships and companies, production cooperatives, governmental and municipal unitary enterprises; this list is complete.

    Non-commercial organizations are those which don’t have profit making as their primary objective and which don’t share it among the participants. These are consumers’ cooperatives, non-governmental and religious organizations, non-commercial partnerships, funds, organizations, autonomous non-commercial organizations, associations and corporations; this list unlike the previous one is open.
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