Joint Stock Companies
Under the State incorporation law there are four legal forms of a company with a limited liability:
* Limited Partnership (partnership in commendams)
* Limited Liability Company
* Additional Liability Company
* Joint Stock Company
In the present business environment in Russia and considering the needs of a typical foreign investor, the most viable options are a limited liability company and a joint stock company. Therefore, this article concentrates in those company forms.
Limited liability Company A limited liability company is a company established by one or several persons in which the authorized capital is divided in shares (parts) as determined by the constituent documents. Partners of a limited liability company are not responsible for the company's liabilities. Their liability for the debts and losses of the company is limited to their contributions into the authorized capital. In Russian limited liability company is abbreviated OOO and the company name is stated in quotation marks. An English version LLC "company name" has the same meaning. Establishing documents The constituent documents of a limited liability company consist of the Founding Agreement signed by the founders and the Articles of Association approved by them. In case the company is established by only one person, the latter alone shall suffice. Founding Agreement The Founding Agreement is entered into to agree on founding the company and on joint activities in the founding procedure. Furthermore it shall include, for example, the following information: * Founders of the company,
* The amount, contents, term and method of making contributions by partners,
* The liability of partners for violation of the obligations on making contributions,
* Certain other information to be included also in the Articles of Association
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