Company Or LLC ?

Before registering the company, employer or group of founders to choose the form of property. Today the most common forms of property rights in Russia are Limited (Company Limited liability) and jsc (Joint Stock Company). Before you choose, you need to understand exactly how the work will be the future of the organization. Company Ltd. and has several features that distinguish these ownership of each other. First and most important difference – the legislation that regulates the activities. Thus, the activity Ltd.

is regulated by the Federal Law 'On Limited Liability Company' on 08/02/1998 14-FZ, and the company – the Federal Law 'On Joint Stock Companies "from 26.12.95 208-FZ (as amended on 07.08.2002), the authorized capital of the company divided into shares among the founders and the proportion of these may be be different. In the company the share capital – is the nominal value of the shares, and divided it into equal shares among founders of the company. Each part consists of the shares. Since the shares are securities company must keep a register of holders of shares and issue of shares to be permission. Contingency fund company should be at least 5% of the share capital and provided by the Charter. In the llc formation of such a fund is not necessary. Another significant difference between the llc and jsc – this is part of the founding documents. If a company such documents are the Charter and the Memorandum, the Company is the principal instrument of its charter.

It is curious that the memorandum of association company is only a contract of jointly administered activity and does not constitute an instrument relating to the entity. However, the charter company is a complex legal document and contains the most detailed information about the Company. Thus, it necessarily is registered as joint stock companies, the number, nominal value and category of shares, types of preferred shares, the rights of shareholders of the Company for each category of shares. Closed joint-stock companies are still a number of features compared to the societies of limited liability. However, the key distinguishing features are listed above.