Municipal institution and municipal enterprise. Municipal unitary enterprise

2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:43

An enterprise is an autonomous business entity that is established and operates on the basis of existing national legislation to produce products, provide services and perform work.

The two main goals of its operation are to meet emerging needs and make a profit. One of the forms of organization of economic activity 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, there are actually three large groups of commercial organizations:

1. Economic society, or partnership.
2. Production cooperative.
3. Unitary state or municipal enterprise.

The first group includes the largest number of subcategories:

• Full society.
• Special partnership.
• OOO.
• Society with additional liability.
• JSC and CJSC.

A cooperative is an association of citizens onvoluntary basis for joint economic activity. Each of its members personally participates in the work and makes a share contribution there. All members of this organization are jointly responsible. This means that the profit is distributed in proportion to the labor contribution. When a production cooperative is liquidated, all remaining property is distributed among employees according to a similar principle.

State and municipal enterprise: key features

The last category includes unitary business entities. A municipal enterprise is a special type of commercial organization in which the ownership of property is not assigned to an individual. Therefore, such a business entity is called unitary. Its property is not distributed into shares and shares, including among the people who work on it. According to the Civil Code of the Russian Federation, a municipal enterprise is always a unitary enterprise. At the same time, this form is typical only for such business entities created by state or local governments.

Non-profit 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. There are the following main types of non-profit associations:

1. Consumer cooperative.
2. A religious or social organization.
3. Fund.
4. Institution, includingincluding municipal.
5. 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.

Municipal enterprise uniforms

All unitary economic entities are usually divided into two types. All public institutions can be attributed to one of them.

The first includes enterprises with the right of economic management. This means that he has the legal ability to own, use and dispose of property within the limits established by law. This state of affairs is preferable, since in this case you can independently determine your strategy and set goals and daily tasks corresponding to it.

A 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 independence in management.

Creation process and work

Municipal unitary enterprise begins its activities by decision of the state body. The Government of the Russian Federation can also create a state-owned enterprise on the basis of property in its ownership. The charter is the founding document. The state or municipal body shall be liable in case of insufficiency of the property of the enterprise created by it. The head is fully accountable to the Government of the Russian Federation represented by its authorized bodies.

Basics

According to article 52 of the Civil Code of the Russian Federation, a unitary enterprise is a business entity that is not endowed with the right of ownership of the property assigned to it. Its charter must necessarily include two clauses:

• Subject and purpose of activity.
• Amount of authorized capital and sources of its financing.

Company name must necessarily contain an indication of state property. For obligations, a unitary enterprise is liable with all its property, but cannot act as a pledge or become insolvent as a result of the bankruptcy of its owner. In the Russian Federation, there is a special Federal Law that describes precisely such business entities.

Opportunities for operational and complete management

Any municipal enterprise is created on the basis of a decision of a local government body. It is to them that its charter is approved. The size of the fund of a unitary enterprise with the right of economic management must be fully financed before its registration. If the amount of net assets at the end of the year is less than the authorized capital, thenthe authorized body is obliged to track this situation and reduce it. A notice of a change in the size of the fund is sent to all creditors who may require the enterprise to fulfill its obligations ahead of schedule. The owner is not liable for obligations, except as described in Article 56 of the Civil Code of the Russian Federation.

Unitary enterprises with the right of operational management are created by government decision. Federal property is assigned to them as their property. The founding document is also a charter. The main difference is that if the property is insufficient, the state is responsible for its obligations. Accordingly, reorganization and liquidation are carried out only by decision of the Government of the Russian Federation.