THE CHARTER AND THE FOUNDING AGREEMENT

The legal basis for the activity of a legal entity that allows it to act in civil circulation as a subject of law is its constituent documents. The charter and the founding agreement may act as constituent documents, non-profit organizations may act on the basis of the general regulations on organizations of this type.

THE CONCEPT OF THE CHARTER
The charter is a set of rules governing the activities of a legal entity. The Charter has a special status, it regulates the "internal life" of the organization and occupies the highest place in the hierarchy of other local acts of a legal entity. Internal documents of the organization should not contradict the charter and in the presence of conflicts, the rules of the charter are always applied.

THE CONCEPT OF A CONSTITUENT AGREEMENT
Of great importance for a legal entity is the founding agreement, which by its legal nature is a civil-law multilateral agreement that establishes the mutual obligations of the founders to create a legal entity, the conditions for transferring their property to it and participating in its activities, as well as the conditions and procedure for distributing income and losses between the participants, managing the activities of the legal entity, and the withdrawal of the founders (participants) from its composition.

WHAT CONSTITUENT DOCUMENTS MUST A LEGAL ENTITY HAVE
The current legislation contains requirements for the list and form of constituent documents mandatory for legal entities. Depending on the legal status of the organization, the legal basis of its activities is the charter (regulation) and the founding agreement, or only the charter (regulation).

MANDATORY PRESENCE OF THE CHARTER AND THE FOUNDING AGREEMENT
The mandatory presence of the charter and the founding agreement is provided for the following organizations:

COMMERCIAL ORGANIZATIONS:
Limited Liability Partnership;
Partnerships with additional liability;
Full partnership;
Limited partnership;
Production cooperative;
Joint stock company.
Note: If there is only one participant (shareholder) in these organizations, then the constituent agreement is not concluded.

NON-PROFIT ORGANIZATIONS:
Foundation (private, public, corporate, state);
Consumer Cooperative;
Non-profit joint stock Company;
Associations of legal entities and individual entrepreneurs in the form of an association (union);
Chamber of Commerce and Industry.