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2. Organization, Reorganization and Liquidation of a Business St. Petersburg provides lots of opportunities to set up a business, but sooner or later a businessman will have to carry out a number of necessary procedures, that include: 1. Search for the source of funding; 2. Choice of a type of ownership; 3. Choice of a corporate title; 4. Registration of a business with respective authorities; 5. Choice of a suitable taxation system; 6. Licensing, if necessary; 7. Certification of a product or a service, if they are subject to certification; 8. Search for business premises; 9. Getting information about one's business rights and liabilities, as well as information about controlling and supervising state authorities. This section of the Guide is to help business people address these and many other issues related to setting up a new business.

2.1. Choice of a Type of Ownership for Business Relations Participants Type of ownership is taken to mean the way of registering and using assets of a commercial entity and legal status and business aims of a commercial entity resultant from registration28. Business activities can be carried out by citizens registered as individual enterprisers without formation of a legal person, and also legal persons Individual proprietor is liable for his obligations with all his property except for the property upon which penalty can not be imposed under the applicable law. Legal entities include: — for-profit organizations that set yielding profit as their primary objective; — not-for-profit organizations that don't set making profit as they main priority and don't distribute received revenues between participants. Not-for-profit organizations can conduct commercial activity only if it helps them achieve the goals for which they were established29. According to the Civil Code of the Russian Federation for-profit organizations in the Russian Federation (and in St.-Petersburg in particular) can have following ownership structures (see the scheme below).

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The RF Civil law regulation of relations between persons conducting commercial activity or participating in such activity is based on the assumption that business activity is an independent activity that implies liability of a businessperson and is targeted at regular profit making from using assets, selling goods, executing works or rendering services by persons duly registered in this capacity under the law. The rules determined by the civil legislation shall be applied to relations with foreign citizens, individuals without citizenship, and foreign legal entities unless otherwise provided by the law. 29 For details about not-for-profit organizations see the Federal Law of No. 7-FZ 12.01.1996 “On Not-for-Profit Organizations” (as amended on 17.05.2007), the Federal Law of 11.08.1995 “On Charity and Charitable Organizations” (as amended on 30.12.2006). 54

Business.support.structure.in.St.Petersburg  

1. STATE AND MUNICIPAL AUTHORITIES IN ST. PETERSBURG In St. Petersburg the system of state authorities was formed which has statutory object...

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