LawState and Law

Legal regulation of entrepreneurial activity: features and structure

Legal regulation of entrepreneurial activity is an interconnected system of legal and non-legal instruments that enable citizens and legal entities to carry out activities at their own risk and risk, the main purpose of which is profit making, and the main content is the production, exchange or redistribution of basic resources.

Legal regulation of entrepreneurial activity has its own specific features, the main of which is that there is a crossing of both private and public-state interests and means. At the same time, it should be emphasized that in relation to private interests, the contract is usually used as the main regulatory instrument, and public legal means in relation to public interest.
It is worth noting that the legal regulation of entrepreneurship and the civil-law contract are inextricably linked with each other. From the point of view of private law, the contract is the main instrument of interaction between individuals. However, in parallel with this, the contract is the most important institution with the help of which the state authorities carry out legal regulation of business activities. After all, almost every agreement, both between individuals and between organizations, is built according to one or another "model agreement", approved by a federal, regional or local government. The state in this case, as it were, authorizes these or other entrepreneurial relations.

In addition to treaties that are still more relevant to the conduct of private law, entrepreneurial relations in a number of spheres imply the application of funds related to so-called public law. An example of this can be the fact that any major transaction can be concluded by a limited liability company only if the consent of the general meeting of members of the given company is obtained for this. The state in this case assumes not only the responsibility for creating model contracts, but also controlling functions to supervise the correctness of the conduct of a procedure.

Thus, legal regulation of entrepreneurship implies close interaction of private and public spheres. On the one hand, it is, first of all, the basis for interaction between citizens, as well as between citizens and organizations and institutions with regard to the production and exchange of material goods, and on the other hand, the legal norms created or sanctioned by the state are the main regulator of this sphere.

As for the content and structure of the legal regulation of business, there are three main components.

First, this regulation concerns relations directly related to the legal registration of entrepreneurship. These relations are entirely based on the constitutional right of citizens to carry out at their own risk and entrepreneurial activity, assuming all the risks and responsibilities for its proper management and clearance.

Secondly, the legal regulation of entrepreneurial activity covers relations directly related to business itself. Here, as already indicated above, there is a synthesis of private and public-state regulation. At the same time, the state not only controls the correctness and legality of the implementation of certain transactions, but also through taxes, interest rates and other instruments, itself has a direct impact on the development of business in the country.

Thirdly, an important component of any entrepreneurial activity is the consumer, therefore, legal regulation must necessarily include this group of entities. Here, you can also distinguish between the direct interaction of the entrepreneur-consumer, and the interference of the state as the most important supervisory authority in the event of legal disputes.

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