How JSC differs from LLC

One of the most popular forms of ownership of business enterprises conducting various types of activities are limited liability companies (LLC) and a joint-stock type company (OJSC - an open joint-stock company).

Business entities

A limited liability company is a company of an economic type, which is created by one or more persons. Its authorized capital is divided by shares among its creators. All members of a limited liability company accept responsibility for risks associated with the business activities of this legal entity, in accordance with their shares that are allotted to them in the authorized capital.

A joint-stock company is a commercial type institution, the finances of which are represented in the exact number of shares, which, in turn, have a nominal value. The shares may be held by the persons who bought them back. One of the main differences of this type of farming is that an unlimited number of persons can own shares. Shares can be sold and redeemed, as well as change their own value depending on the exchange rate, when it comes to large players in the market.

Capital

The fixed capital of the joint-stock company is formed from the real promotional price at which the shareholders purchased the shares. You can pay for shares that are distributed among the founders using cash, property, services, etc.

The fixed capital of a limited liability company is the aggregate value of shares owned by the founders of this business form.

Shares in the authorized capital

The founders of LLC and OJSC may be ordinary citizens and legal entities. Representatives of the government and local government do not have the right to act as co-founders of these two forms of economic activity.

In its structure, LLC is more closed than OJSC. In LLC founders can be no more than 50 persons. If this number is greater, then in the next 12 months after the registration of the "excess" owner, the legal entity should transfer to the status of OJSC. In case of non-conversion, it is eliminated in the manner prescribed by law.

In order for the registration of OJSC and LLC to be carried out in accordance with all legal norms, the tax authorities provide a whole package of documents of a standard type. Registration of a company is complicated only by the need for documentary evidence of equity securities.