Business entities shall be understood to be parties to economic
relationships that carry out economic activity, exercising their economic
competence (integrity of economic rights and obligations), have separate
property and suffer liability by their obligations within this property, except
for cases, envisaged by the law.
The following
shall be deemed business entities:
1) legal
entities, established pursuant to the Civil Code of Ukraine;
2) state,
municipal and other enterprises, set up in accordance with the Economic Code of Ukraine;
3) citizens of
Ukraine, foreigners and stateless persons that conduct business activity and
are registered as entrepreneurs according to the law.
Legal entity is an organization established and registered
according to the procedure
specified by
the law.
Legal entity
is vested with legal capacity and capability and may act as a plaintiff or a
defendant in
the court.
Legal entity
may be created by integration of natural persons and (or) the property.
Legal entities
may be created in the form of partnerships, institutions and other forms
established
by the law.
A partnership is an organization created by uniting persons
(participants) with the right to
the
participation in this partnership. The partnership may be organized by one
person
unless
otherwise established by the law.
Partnerships
shall be divided to entrepreneurial and non-entrepreneurial.
The
partnerships carrying out the entrepreneurial activity with the purpose of
receiving profit
and subsequent
distribution thereof among their participants (entrepreneurial partnerships)
may be created
solely as economic partnerships (general partnership, limited partnership,
limited liability
partnership, additional liability partnership, joint-stock partnership) or
production
cooperatives.
Non-entrepreneurial partnerships are the
partnerships not aimed at the receipt of profit for the subsequent
distribution thereof among their participants.
Institution is an organization created by one or several persons
(founders) who do not
participate in
management thereof by uniting (separation) their property with the purpose
of achieving
the goal specified by the founders at the expense of this property.
Enterprise, to be understood as an independent business entity
set up by a competent state authority or local government, or other parties for
the purpose of satisfaction of public or personal needs through regular
production, academic and research, trade, and other activity in keeping with
the procedure established by the Economic Code and other laws.
An enterprise
may not have other incorporated legal entities.
Enterprises in
Ukraine may be of the following types depending on ownership forms established
by the law:
private
enterprise that acts on the basis of private property of individuals or a
business entity (a legal entity);
enterprise
that acts on the basis of collective property (a collective property
enterprise);
municipal
enterprise that acts on the basis of municipal property of a territorial
community;
state
enterprise that acts on the basis of state property;
enterprise set
up on a mixed ownership form (on the basis of combination of property of
various ownership forms).
An individual shall be deemed a business entity in the event he/she
is involved in an entrepreneurial activity on condition of his/her state
registration as an entrepreneur without the legal entity status.
An individual
entrepreneur shall be liable for his/her obligations with all his/her property,
which may be seized according to the law.
The individual
may be involved in entrepreneurial activity:
directly as an
entrepreneur or through a private enterprise set up by the individual;
with or
without the employed labor;
independently
or jointly with other persons.
The individual
shall conduct management of the private enterprise set by him/her directly
through the manager hired on the contractual basis.
The individual
entrepreneur shall be under the obligation to:
obtain the
license for performing certain types of economic activity in cases and
according to the procedure established by the law;
inform state
registration authorities of a change of address indicated in the registration
documents, subject of activity, other essential terms of his/her
entrepreneurial activity subject to specification in the registration
documents;
comply with
rights and lawful interests of consumers, secure proper quality of products
(works, services) manufactured by him/her, observe the rules of mandatory
product certification established by the law;
not to allow
unfair competition, other violations of antimonopoly and competition
legislation;
keep records
of the results of entrepreneurial activity in compliance with legislative
requirements;
provide to tax
authorities in timely manner income statements, other required documents for
charging taxes and other obligatory payments; pay taxes and other obligatory
payments in keeping with the procedure and in sizes established by the law.
All provisions
are taken from the Civil Code and
Economic Code of Ukraine
Related post: Ukrainian Business Law (Basic): Part I"ENTREPRENEURSHIP"
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