Nowadays in our country we have many opportunities for business. Making business is easy because of our system of legality. Always people who intend to open own activities they should choose a form of legal entity. There are many forms of legal entities in our Republic and they are joint-stock company, limited liability company, private enterprise and so on.
Private enterprise is a commercial organization established and managed by the owner — a physical person. Private enterprise is the legal form of business entities.
A private company owns separate property, may on its behalf acquire and exercise property and personal non-property rights, bear duties, be a plaintiff and defendant in court.
Private enterprise is liable for its obligations with all property belonging to it.
The owner of a private enterprise in accordance with the legislation bear subsidiary liability of its property for the obligations of private enterprise with insufficient assets of the enterprise.
There are positive and negative sides of making business as private enterprise:
- Establishing the private enterprise is very easy. People don’t have to spend a great deal of money as other legal entities. There is a basic way of setting up that. Frequently, there is just need to take license for producing so me goods or services from local government.
- All benefits will be given directly to creator.
- Owner is able to realize his own ideas without any agreement.
- That legal entity ha the closest attitude with consumers. And it gives preference of having information about requirements of buyers.
- Another essential side of private company is that the only owner knows about company’s secrets. It guarantees him total confidence.
On the other hand, it also has many disadvantages.
- First of all, it is dependence on one person. The company might be closed, if the owner is taken ill or die.
- Many firms and banks don’t trust them capital and loans.
- Because of small capital of the company can’t be extended fast.
- The owner has material responsibility if the company has many debts.
Advantage side of the private enterprise is an enable to do all business activities. It is not prohibited by government. Disadvantage side is if private enterprise becomes bankrupt only proprietor can be responsible and he must pay all of debt.
There is not any difficulties for creating fund of private enterprise. Because of minimum of the fund of entity is not exist. Thus, without a lot of money we can compose the fund and begin activities. If we intend to make up the fund of the private enterprise without money we can do it. With money evaluative, securities and another property or right of property may be as the fund of legal entity. About this we can know from the Law on “Private enterprise” and according to 12th article is about capital of the private enterprise.
The authorized capital of private enterprise is indivisible and is determined by the owner.
A contribution to the authorized Fund of a private enterprise may be money, securities, other property or property rights or other alienable rights having monetary value. The owner shall evaluate the property made to them in the authorized capital of private enterprise.
If the formation of the authorized Fund of a private enterprise owner sends the company a property that is common (shared or joint) property of the members of his family, is required to obtain a notarized consent of all owners of the property.
According to 14th article of Law on “Private enterprise” we can know how to rule solely. The owner of the private enterprise as the leader personally controls the company without power of attorney acts on its behalf, represents its interests, manage the monetary funds and other assets of private enterprises, concludes agreements, including labor, issues powers of attorney, opens Bank accounts, approves number of staff, issues orders and gives instructions mandatory for all employees.
To my mind, everybody wants to live better and everybody is trying this. That’s why more people do business activities for getting their life better. It is also useful for county and for economy. Legal entities are a key to making business.