Forms of business organization: Advantages and disadvantages

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 Forms of business organization: Advantages and disadvantages          

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• organizational and legal forms of the event;

• Legal Basis of Owning an Enterprise in Uzbekistan;

• steps of the private enterprise organization process.

According to the Law of the Republic of Uzbekistan "On Entrepreneurship", the organizational and legal forms of small business entrepreneurship are as follows:

• Individual labor activity;

• Collective entrepreneurship, which is carried out by some people on the basis of hiring hired labor;

• Collective entrepreneurship carried out by a group of citizens;

• Joint entrepreneurship carried out on the basis of combining the property and property rights of legal entities and citizens.

At the same time, business entities, that is, business organizations, are created for the purpose of carrying out business activities.

If a private entrepreneur uses hired labor in his activities, he is considered a legal entity and must carry out entrepreneurship on the basis of the Laws "On Enterprises", "On Entrepreneurship" and other regulatory documents of the Republic of Uzbekistan. .

The organizational and legal forms of private entrepreneurship in the Kishlok economy are expressed in the Laws of the Republic of Uzbekistan "On Farming", "On Farming", adopted on April 1998, 30. found

A farm is an independent economic entity with the rights of a legal entity, based on the joint activity of the members of the farm, which produces products using the land areas leased to it for a long period of time, engages in agriculture.

Persons working on a farm under an employment contract are not considered members of the farm.

In the system of organizational and legal forms of entrepreneurship, various types of business companies and societies take the leading place.

A company is an association of several persons to carry out joint business activities under a common name.

A business society is an enterprise organized by uniting the properties of one person or several persons to carry out business activities.

A company that jointly engages in business activities of the participants in accordance with the mutually concluded contract on behalf of the company and is responsible for all the property belonging to them for the company's obligations. is a full company. Business activities carried out by the company in which some of the participants take risks within the limits of the added amount or contributions for losses related to the company's activities. limited partnership called

Private entrepreneurship is defined as the conduct of business activities by a legal entity:

• Without establishing a legal entity;

• Independently, without the right to hire workers;

• On the basis of property belonging to the entrepreneur, as well as on the basis of other rights of ownership and use of property.

Features of private business registration

• Registration is carried out by district, city, authorities on the basis of accounting of tax organizations at the same time;

• The decision on registration is accepted by the registering organization no later than 3 days after the individual submits the application together with the necessary documents. If the applicant considers the refusal to be unfounded, he has the right to appeal this decision to the court;

• The total period of obtaining a license from the internal affairs organization for formalizing the preparation of a seal and stamp and taking into account in the relevant state organizations should not exceed 8 working days from the time of submitting the application together with the necessary documents;

• Certificate of registration of an individual at the specified time of application Document of payment of registration fee through a bank or other credit organization that accepts payments from citizens This certificate is issued after submission (This certificate is issued to private entrepreneurs when opening a bank account, preparing a seal and other requisites, connecting to engineering communications (gas network, energy supply, water use, heat supply, sewage, etc.)) will be the basis;

• After registration, a private entrepreneur must apply to the bank and apply to the authorized state organization for a license to engage in a specific type of activity based on current legislation.

For state registration, a private entrepreneur submits the following to the registering organization:

• Form application;

• Passport;

• Picture;

• A document on the payment of the registration fee;

• Sample card in triplicate with stamp and imprint.

There are a number of steps involved in setting up an enterprise:

1. Holding a meeting of founders to establish an enterprise;

2. Preparation of founding documents;

3. At the time of opening and registering a temporary number in the bank, a part of the charter fund is deposited into it;

4. Organizing the sale of shares, convening the founding meeting (for JSC);

5. Identifying and assigning a company name to the enterprise;

6. Paying a fee for state registration of the enterprise;

7. Submission of documents to the registering organization;

8. Increase the preparation of the seal in the relevant organizations of the Ministry of Internal Affairs of the Republic of Uzbekistan;

9. Opening a bank account number;

10. Obtaining the necessary license for the implementation of certain types of activities;

11. Obtain permission to use rooms and connect to engineering communications in relevant organizations;

12. Purchase of financial and accounting documents and opening of accounting books, issue and sale of shares and bonds (on the basis of mass subscription for JSC).

Advantages of private entrepreneurship:

• Obtaining a license to engage in private entrepreneurship is relatively simplified for business companies: a private entrepreneur can operate without establishing a legal entity after state registration. In this case, a private entrepreneur can open a bank account and make a cashless settlement with his partners;

• a simplified system of taxation is used: for example, tax is paid on the basis of a single tax payment or paid on the basis of a monthly rate, the amount of which is determined by the type of activity and may be different in different regions.

Weaknesses of private entrepreneurship:

• limited lending opportunities;

• liability with his own property;

• the possibility of expansion and development of activity is limited or it leads to organizational and legal changes.

Legal documents on limited liability and additional liability companies «The Law of the Republic of Uzbekistan "On Limited and Additional Liability Companies"  and other legal documents.

Limited liability company. The general meeting of the participants of the society is the highest governing body of the LLC. The day-to-day management of the society is carried out by the executive body of the society (director or directorate), which is appointed at the general meeting of the society's participants and reports to it. LLC partners are not responsible for its obligations and bear the risk of losses related to the company's activities only within the value of their contribution to the authorized capital of the company.

Legal status of limited liability and additional liability companies. A limited liability or additional liability company (hereinafter referred to as the company) acquires the status of a legal entity from the moment of its state registration in accordance with the procedure established by law.

The society has the right to become the founder of other legal entities or to participate in their authorized fund (authorized capital) in another way, to establish representative offices and branches in accordance with the procedure established by law.

The society is established for an indefinite period, unless otherwise specified in its founding documents.

The company must have a circular seal with the full name of the company expressed in the official language and the address of the company. In the seal of the company, its company name can be expressed in other languages ​​at the discretion of the company.

The company has the right to have its own stamps and forms with the name of the company, its own emblem, as well as a trademark registered in the prescribed manner and other signs of its own.

The society will have separate property, which will be accounted for in its independent balance sheet, can receive rights, have obligations, be a claimant and be liable in court.

The society can carry out any type of activity that is not specified in the legal documents.

The society can engage in certain types of activities, the list of which is determined by law, only on the basis of a license.

The society is responsible for its obligations with all its assets. The Society is not responsible for the obligations of its participants.

If the bankruptcy of the society was caused by the fault of a person as a participant, in the event that the assets of the society are insufficient, such a person may be charged with subsidiary responsibility for his obligations.

The state and its bodies are not responsible for the obligations of the society, just as the society is not responsible for the obligations of the state and its bodies.

Methods of forming a joint-stock company. The company can be formed by establishing anew and (or) reorganizing an existing legal entity (adding, merging, dividing, separating, reorganizing).

The formation of the society by incorporation is carried out according to the decision of the founders (founder). The decision to establish the society is adopted by the founding meeting. If the society is founded by one person, the decision to establish the society is accepted by this person alone. The founders of the society sign a mutual foundation agreement on its creation, the contract specifies the procedure for their joint activity in establishing the society, the amount of the charter fund of the society, the types of shares to be placed between the founders and types, the amount of the fee paid for them and the procedure for paying this fee, the rights and obligations of the founders regarding the establishment of the society are determined.

The decision on the establishment of the society should reflect the voting results of the founders and the decisions taken by them regarding the issues of establishing the society, approving the charter of the society, and electing the management bodies of the society.

Decisions on establishing the company, approving its charter and approving the valuation of the securities, other property rights or other rights valued in money, which are handed over by the founder to pay for the shares of the company, are made by the founders. accepted unanimously.

Formation of a company with the participation of foreign investors is carried out in accordance with the laws of the Republic of Uzbekistan.

When the state enterprise is transformed into a joint-stock company, the decision on its establishment is adopted by the body authorized to dispose of state property.

Relations related to the formation of joint-stock companies, their activities and their liquidation, protection of the rights of shareholders."On protecting the rights of joint-stock companies and shareholders". It is regulated by the Law of the Republic of Uzbekistan and other laws of the Republic of Uzbekistan. In the fields of agriculture, banking, investment and insurance activities, as well as during the privatization of state enterprises, the creation of joint-stock companies and the specific features of their legal status are determined by legal documents.

Legal status of joint stock company. The charter fund is considered as a joint-stock company, a business entity divided into a certain number of shares confirming the company's obligations to shareholders.

The society has rights and assumes obligations during the implementation of any type of activity not specified in legal documents.

The society is a legal entity and has separate assets that are accounted for in its independent balance sheet, can receive and exercise property and personal immovable rights on its own behalf, undertake obligations, be a claimant and liable in court.

The society acquires the rights of a legal entity from the moment of state registration. The society is established for an unlimited period of time, unless otherwise specified in its charter.

The society has the right to open bank accounts in the territory of the Republic of Uzbekistan and outside it according to the established procedure. The company will have its own company name, which should reflect the organizational-legal form and network (open or closed) of the company. A joint stock company can be open or closed. The minimum number of founders of an open joint-stock company is not limited, while the founders of a closed joint-stock company are defined as consisting of at least three persons. Every institution of the society must be its shareholder.

Open joint stock company A joint-stock company whose members can transfer their shares to other persons without the consent of other shareholders is considered an open joint-stock company. An open joint-stock company has the right to open subscription to the shares it issues and to sell them freely, taking into account the requirements of the law.

An open joint-stock company has the right to make a closed subscription for the shares it issues, except for the cases where the possibility of making a closed subscription is limited in the company's charter and legal documents. The number of shareholders of an open joint-stock company is not limited.

Closed joint-stock company A joint-stock company, whose shares are distributed only among its founders or a predetermined group of persons, is considered a closed joint-stock company. Such a company does not have the right to open subscription to the shares issued by it or to offer them for purchase to an unlimited number of persons in any other way. The number of shareholders of a closed joint-stock company cannot exceed fifty. In the event that it exceeds the specified limit, the persons whose number of shareholders exceeds the limited limit for closed joint-stock companies must be converted into an open joint-stock company within six months from the date of registration in the register of shareholders.

Shareholders of a closed joint-stock company have a preferential right to buy shares sold by other shareholders of this company at the price offered to another person. If the shareholders do not use their preemptive rights to purchase shares, the company's charter may provide that the company has a preemptive right to purchase the shares sold by the shareholders.

The procedure and period of using the preferential right in the purchase of the shares sold by the shareholders shall be determined in the charter of the company. The period of using the preferential right cannot be less than 30 days and not more than 60 days from the moment of the shares being offered for sale.

Usually, an entrepreneur who has just started his activity faces the question of choosing the organizational and legal form of his future activity. Questions such as whether it is necessary to become a legal entity or a sole proprietorship, and if a legal entity becomes one, how will it be? In many cases, such an important decision is made without a serious choice and without understanding its consequences.

In fact, it is impossible to give universal advice on such a choice. The best choice for his situation will be made by the head of the event.

In order to choose the organizational and legal form of business, it was necessary to have an idea of ​​all available forms. It is necessary to choose the best-optimal option among them.

When choosing the organizational form of the enterprise, it is necessary to take into account its specific characteristics. The purpose of this is not to make it known that the Company needs to be deregistered from the Register in order to resolve any financial transaction or issue.

According to the current legislation of the Republic of Uzbekistan from January 2004, 1, small business entities include the following: individual entrepreneurs, small firms and small enterprises with an average annual number of employees of around 100 people.

The following legal entities may be small business entities:

• private enterprise

• limited liability company (LLC);

• Additional responsibility society (KMJ);

• tula xamKorliK;

• Kommandit-hamKorliK;

• development cooperation.

Small business entities can engage in any type of business activity, and only this activity should be within the framework of the current laws of the Republic of Uzbekistan. It should be noted that it is possible to engage in business with or without forming a legal entity.

The advantage of creating an enterprise through legal entity formation is that in this case you can operate in any type and direction of business. In this situation, the necessity and complexity of accounting, and the limited number of books are considered a disadvantage.

In turn, by creating a business without forming a legal entity, you will be deprived of the opportunity to engage in such profitable areas of business:

• establishment of a hotel;

• Providing services to private individuals regarding Capital Construction;

• Construction assembly works;

• wholesale trade;

• sale of all types of oil products Kilish;

• Providing services in the field of general hunting;

• Servicing of the television program distribution network and transmission of television and radio programs through cable networks;

• brokerage and evaluation activities and a number of other directions.

Before opening your business, you need to know what organizational and legal form your company will have. According to practice, the following are considered the most widespread organizational and legal forms of business in Uzbekistan;

• Without the formation of a legal entity - individual activity, in this case, the business is conducted on the basis of the certificate of registration obtained by the individual;

• Forming a proper person:

1. a) private Enterprise (a business organization created and managed by one individual - the owner).

2. b) limited liability and additional liability companies (LLC and HMJ) (an economic company managed by a hired director, formed by one or more individuals or legal entities)

3. s) Joint-stock company (JSC) (a company whose charter fund is divided into a certain number of shares. JSC has a Coop-level management in which the functions of each management body are divided)

4. d) Unitary Enterprise. A unitary enterprise is a business organization that does not own the property attached to it by the owner.

			Different forms of business organization
			advantages and disadvantages

How is it possible to make a decision when choosing the organizational and legal forms of this type of business organization and what should be based on it?

We present the main factors that determine the ways of doing business. These factors include:

ⁱ Type of business and its size;

ⁱ The number of employees, their involvement in business management and the responsibilities of each;

ⁱ Funds at the disposal of the founders of the enterprise and the minimum size of the statutory fund established by the law;

ⁱ The amount of each shareholder's share in the charter fund;

ⁱ Specific characteristics of each of the listed legal forms.

We will examine in detail the advantages and disadvantages of the most common forms of business organization.

Form of business organization	Advantages	Poorly
YaKKa	• Good Professional	• Economic entity
eventCorliK	has qualities	existence and physicality
	a person needs it	the person is limited by life;
	work with khaKi	• Limited business scope
	provide, employ	initial investment for
	location	get dressed;
	solve the problem	• "Official" business
	The opportunity to come	None of them
	will give;	serious about such work
	• Easy and cheap	To invest
	register	does not want;
	utCut out;	• Obtaining credit resources
	• Head of state	limited;
	Few;	• If you borrow money,
	• In the cup miKdor	your property is at risk
	accounting	under Koladi;
	documents	• All of the business
	maintenance requirement	perform problems
	not done;	Dress up; rest day,
	• Flexibility,	Sick leave, social
	tezKor Karor Kabul	related to fees
	Availability.	problems.

Private Enterprise	• Simplicity of business management; • Preparation of founding documents (statutory charter) and officialization of the enterprise by the state (registration) at the end simplified; • The size of the statutory fund is determined by the owner of the enterprise; • It is possible to hire workers; • After taxes and other mandatory payments are made, the profit is at the disposal of the property owner and is not taxed.	• The founder is responsible for the responsibility (responsibility) of his enterprise with the property belonging to him.
Limited Liability Company (LLC)	• The financial responsibility of each Participant is limited to the amount contributed to the Company's Charter Fund; • The minimum size of the statutory fund is equal to 50 MX,TMU (minimum size of investment in the cocktail); • There is an opportunity to manage the business with the help of a hired executive director.	• Limitation of the possibility of lending and concluding transactions (responsibility is determined by the size of the authorized fund of the enterprise).

It should be noted that from January 2009, 1, the establishment of the charter fund of joint-stock companies in the amount equivalent to 400 ASH dollars limits this organizational and legal form of the enterprise, for many potential entrepreneurs, in setting up their own business. That's why we don't try this form of business organization.