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There are 6 types of profit organizations and 16 types of non-profit organizations in Russia (see above).

3.2.1. Legal Status of Profit Organizations and Non-Profit Organizations

Organizations, which activities’ main purpose is to generate profit, are considered as profit organizations. Non-profit organizations can be created for social, charitable, cultural, educational, scientific, and managerial purposes, for the purposes of the health of citizens, the development of physical culture and sports, the satisfying of spiritual and other non-material needs of citizens, the protection of rights and legitimate interests of the citizens and organizations, the settlement of disputes and conflicts, providing legal aid, as well as other purposes aimed at the achievement of public benefits (Clause 2 of Article 2 of Federal Law on Non-Profit Organizations).[27]

As a general rule, profit organizations[28] have general legal capacity.[29] This means that they can be engaged in any activity, if this activity does not contradict with the legislation. Non-profit organizations, on the contrary, possess only special legal capacity. This means that they can be engaged only in the activities which correspond to the subject and purpose of the activities fixed in their charters.

27

See section 1.B.b of the present chapter for the right of a non-profit organization to generate profit from its activities.

28

Commercial organization can be created for certain purposes which are listed in its charter. In such an event, it will have a limited legal capacity.

29

State and municipal unitary enterprises are given an exception to this rule.