World Library  
Flag as Inappropriate
Email this Article

Unitary enterprise

 

Unitary enterprise

A unitary enterprise is a government-owned corporation in Russia and some other post-Soviet states. Unitary enterprises are business entities that have no ownership rights to the assets that they use in their operations. This form is possible only for state and municipal enterprises, which respectively operate state or municipal property. The owners of the property of a unitary enterprise have no responsibility for its operation and vice versa.

Russia

The legal status of unitary enterprises in Russia is defined in Federal Law No. 161-FZ "On State and Municipal Unitary Enterprises", which was approved by the State Duma on October 11, 2002 and signed by President Putin on November 14, 2002.

The assets of unitary enterprises belong to the federal government, a Russian region, or a municipality. A unitary enterprise holds assets under economic management (for both state and municipal unitary enterprises) or operative management (for state unitary enterprises only), and such assets may not be distributed among the participants, nor otherwise divided. A unitary enterprise is independent in economic issues and obliged only to give its profits to the state. Unitary enterprises have no right to set up subsidiaries, but, with the owner's consent, can open branches and representation offices.

Though unitary enterprises are owned by the government they work on the basis of commercial accounts and commercial legislation. They are under ministerial responsibility but are off budget. They are auxiliary to a ministry's activity, such as a printing house under the Ministry of Education or a production facility for police equipment under the Ministry of Internal Affairs. State unitary enterprises have a distinct legal status, different from regular market sector corporations.

Examples

See also

This article was sourced from Creative Commons Attribution-ShareAlike License; additional terms may apply. World Heritage Encyclopedia content is assembled from numerous content providers, Open Access Publishing, and in compliance with The Fair Access to Science and Technology Research Act (FASTR), Wikimedia Foundation, Inc., Public Library of Science, The Encyclopedia of Life, Open Book Publishers (OBP), PubMed, U.S. National Library of Medicine, National Center for Biotechnology Information, U.S. National Library of Medicine, National Institutes of Health (NIH), U.S. Department of Health & Human Services, and USA.gov, which sources content from all federal, state, local, tribal, and territorial government publication portals (.gov, .mil, .edu). Funding for USA.gov and content contributors is made possible from the U.S. Congress, E-Government Act of 2002.
 
Crowd sourced content that is contributed to World Heritage Encyclopedia is peer reviewed and edited by our editorial staff to ensure quality scholarly research articles.
 
By using this site, you agree to the Terms of Use and Privacy Policy. World Heritage Encyclopedia™ is a registered trademark of the World Public Library Association, a non-profit organization.
 


Copyright © World Library Foundation. All rights reserved. eBooks from Project Gutenberg are sponsored by the World Library Foundation,
a 501c(4) Member's Support Non-Profit Organization, and is NOT affiliated with any governmental agency or department.