Division of Legal Entities into Commercial and Non-Profit Organizations

Abstract

In this article, the author analyzed the division of legal entities into commercial and non-commercial, rooted in science and legislation. As a result of the analysis of domestic and foreign experience, it was concluded that Russian law does not actually make a clear separation between commercial and non-profit organizations, while in foreign law only one criterion acts as the basis for division – a ban on profit distribution. In this regard, the author proposes to take into account foreign experience and abolish the restriction on non-commercial activities as a general rule. In addition, the author offers a more thorough analysis of the rules of law, the hypothesis of which, if interpreted literally, is designed to apply to commercial or non-profit organizations. Keywords: legal entity; legal capacity; business activity; profit.