Article 50. Commercial and Non-Profit Organisations

Article 50. Commercial and Non-Profit Organisations

1. The legal entities may be either the organisations, which see deriving profits as the chief goal of their activity (the commercial organisations), or those organisations, which do not see deriving profits as such a goal and which do not distribute the derived profit among their participants (the non-profit organisations).

2. The legal persons being commercial organisations may be formed in the organisational legal forms of business partnership and association, peasant's (farmer's) farm, business partnership, production cooperative, state and municipal unitary enterprise.

3. The legal persons not being non-profit organisations may be formed in the organisational legal forms of:

1) consumer cooperatives, which include, inter alia, housing, housing-construction and garage cooperatives, fruit-gardening, vegetable-gardening and dacha consumer cooperatives, mutual insurance societies, credit cooperatives, hire funds, agricultural consumer cooperatives;

2) public organisations which include, inter alia, political parties and trade unions (trade union organisations) formed as legal persons, public movements, public self-governed activity bodies, territorial public self-governing entities;

3) associations (unions) which include, inter alia, non-profit partnerships, self-regulating organisations, associations of employers, associations of trade unions, of cooperatives and of public organisations, industry and commerce, notarial and barristers/solicitors chambers;

4) associations of owners of immovable property which include, inter alia, associations of owners of dwelling;

5) the Cossack associations included in the state register of Cossack associations in the Russian Federation;

6) communities of the indigenous small-numbered peoples of the Russian Federation;

7) funds which include, inter alia, public and charitable funds;

8) institutions which include state institutions (for instance state academies of sciences), municipal institutions and private (including inter alia public) institutions;

9) autonomous non-profit organisations;

10) religious organisations;

11) public-law companies.

4. The creation of the alliances of the commercial and (or) the non-profit organisations in the form of associations and unions shall be admissible.

The rule of Item 5 of Article 50 of this Code is applicable to the non-profit organisations that have been formed since the date of official publication of Federal Law No. 99-FZ of May 5, 2014. In respect of the non-profit organisations that had been formed before the date of official publication of the said Federal Law the rule of Item 5 of Article 50 of this Code shall be applicable from January 1, 2015 

5. A non-profit organisation whose charter envisages the pursuance of income-yielding activities, except for a state-property and a private institution shall have property that is sufficient for pursuing such activities and has a market value of at least the minimum amount of the charter capital envisaged for limited liability companies (Item 1 of Article 66.2). 

6. The rules of the present Code are not applicable to the relationships whereby non-profit organisations carry out their main activity and also to the other relationships with their participation which are not subject matter of the civil legislation (Article 2), except as otherwise envisaged by a law or the charter of the non-profit organisation.