Registration of enterprise
Starting entrepreneurial activity, first of all, you need to think about the choice of the organizational and legal form of conducting business. The simplest options are the registration of a private entrepreneur (PE) or a limited liability company (LLC).
However, there are also other forms of entrepreneurship provided by the legislation.
Additional liability company
Additional Liability Company (ALC) may be founded by one or more persons. A characteristic feature of AlC is the participants’ liability in accordance with their contributions. But! If this is not enough, then additionally (subsidiarily) the participants are liable with their property in the amount that is equally multiple for all contributors. The amount of additional liability is specified in the Articles of association.
To create an ALC, the founders must:
- Hold the general meeting of founders (participants), where important issues are submitted for consideration: establishing the types of activities, agreeing on the name, approving the Articles of association, determining the terms of reference, the amount of liability, etc. The meeting is considered properly held if the required number of participants voted for the relevant issues. The meeting is documented by the Minutes.
- Carry out state registration of an ALC. To do this, at the location (legal address) of the company, the package of documents is submitted to the authorized body. All documents are carefully checked by the registrar, who makes a further decision: register the ALC or refuse.
Joint stock company
A joint stock company is a business entity, the authorized capital of which is divided into shares. Features of registration are the need to implement the general requirements of the legislation, as well as compliance with the norms of the special law on joint stock companies.
The creation of a joint stock company may take place with the conclusion of a memorandum of association. The memorandum of association specifies:
- the procedure for carrying out joint activities to establish a joint stock company;the number, type and class of shares to be acquired by each founder;
- par value and purchase price of shares;
- term and form of payment for the shares value;
- duration of the contract.
An important point of the new law is the shares allocation upon a JSC creation exclusively among its founders through private allocation. A public offering of the company shares can be made only after receiving a certificate of registration of the first issue of shares.
Further, within three months from the date of full payment of shares, the founders hold the constituent meeting of the JSC. A joint stock company is considered established from its state registration. Registration is carried out according to the location (legal address) of the company.