Publications Private enterprise or Limited Liability Company?

Private enterprise or Limited Liability Company?

In this article we shall try to answer the worrying question of entrepreneurs - what is better the Private Enterprise (by Ukrainian - Private Enterprises) or the Limited Liability Company (by Ukrainian - Goods and Goods Companies).

Before analysing the advantages and disadvantages of the above-mentioned organizational and legal forms, we will give the most specific definitions of the CP and LLC.

Private enterprises are independent economic entities established by other entities to meet personal, social and environmental needs through economic activities.

A limited liability company is a company in which the charter capital is divided into shares, the amount of which is specified in the founding documents (statutes). The LLC shall be responsible for its liabilities solely by its property, which is interrupted in the balance sheet of the LLC.

It should be noted that the procedure for the organization and activities of Llcs is regulated by the highly specialized Act "On Economic Societies". Unfortunately, to date, Ukraine has not adopted a law establishing the procedure for the functioning and principles of the organization of private enterprises.

The current legislation of Ukraine does not establish requirements for the size of the authorized capital of the Russian Emergency Force or Ltos.

The management and legal regime of the property of a private enterprise are determined by its founders according to their own wishes. The legislation does not regulate the status of the CP owner, mutual relations between the CP owners, their decision-making procedure, the procedure for the alienation and/or transfer of CP property rights, etc., therefore they are regulated by the provisions of the private enterprise statute. Ukrainian legislation permits the establishment of a private enterprise consisting of one or more natural persons or a single legal entity. At the same time, the content of the ER statute must meet the requirements of Art. 57 of the Ukrainian Economic Code. The ER shall be responsible for the debts of any property it owns.

The governance structure of the Ltas is defined primarily by Arts. 50-64 of the Code "On Economic Societies". A limited liability company may not be established by another economic society in which one person is a member. According to the Act, a person may be a member of only one LLC which has one member. The maximum possible number of members of the limited liability company is 100 people (the investment of the limited liability company is transformed into the joint-stock company). Members of the Society are responsible for the activities of the Ltos within the limits of their contributions.

Contrary to misconceptions common among entrepreneurs, the founders of a private enterprise are at risk of losing only their shares in the registered capital (in other words, the property owned by them is not subject to the risk zone); some commentators consider that the above provision limiting the property liability of the founders,

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