INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE
ISSN: 2692-5206, Impact Factor: 12,23
American Academic publishers, volume 05, issue 07,2025
Journal:
https://www.academicpublishers.org/journals/index.php/ijai
page 224
CONCEPT OF COMMERCIAL ORGANIZATIONS THEIR TYPES AND ACTIVITIES
Abdibaeva Jamila Aqpolat qizi
student of Karakalpak state university named after Berdakh, Faculty of Law
Annotation:
This article provides a comprehensive overview of the concept, types, and
activities of commercial organizations. It discusses the role of commercial legal entities in
economic development, emphasizing that they are established and operate with the primary aim
of generating profit. The article explores the legal foundations and organizational forms of
commercial entities in the Republic of Uzbekistan, such as limited liability companies,
additional liability companies, and joint-stock companies. It also compares these with the
common legal structures used in foreign countries, particularly the United States and the United
Kingdom. The comparative analysis highlights the importance of studying international
practices and legal frameworks to create effective business models and implement innovations.
Key words:
Commercial organizations, legal entity, profit, limited liability company (LLC),
joint-stock company (JSC), business partnership, capital consolidation, international experience,
legal forms
Commercial legal entities are organizations that carry out economic activity and are legally
independent. They carry out their activities for profit and are registered as legal entities in
accordance with the law. Commercial legal entities play an important role in the economic
development of society, as they operate in production, services, trade, investments, and many
other spheres.
Business partnerships and companies, production cooperatives, unitary enterprises, and other
forms stipulated by law may be established as commercial entities, i.e., legal entities whose
primary objective is to generate profit. (Part 2 of Article 40 of the Civil Code).
The name of a commercial legal entity must indicate its organizational form. This is of great
importance for its counterparties, as the specifics of the legal entity's activities, its
entrepreneurial capacity, legal framework, and the ability to be liable for obligations may be
disclosed on behalf of the legal entity. These commercial organizations are one of the most
common organizational and legal forms of entrepreneurship in property relations. Associations
formed by entrepreneurs in this form are called companies or firms in Chinese law and
corporations in Anglo-American legal systems. In the past, such associations in Uzbekistan
existed in the form of partnerships, which were mainly engaged in trade, as well as crafts.
Private entrepreneurship and commerce were not permitted. Taking this tradition into account,
the term "commercial partnership" has been retained in the Civil Code for 83 companies.
Companies and companies are commercial organizations formed at the discretion of their
members, that is, on the basis of a contract concluded by them, possessing common rights.
According to the main rule established in Article 58 of the Civil Code, business partnerships
and companies are commercial legal entities that have their authorized capital (fund, property
fund) separated from the property of the institutions (participants) that participated in their
development and consisting of their shares.
INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE
ISSN: 2692-5206, Impact Factor: 12,23
American Academic publishers, volume 05, issue 07,2025
Journal:
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The primary function of commercial organizations is to generate profit, but they also perform
the following social and economic functions:
Production organization: Commercial organizations ensure economic growth by producing
goods or services, satisfying demand for them, and saturating the market.
Job creation: They hire workers, create jobs in society, and thereby support economic stability.
Efficient use of resources: Commercial organizations use natural and financial resources to
optimize production processes and reduce costs.
Market Development: Commercial organizations develop economic innovations by creating
new products and services in the market and entering new markets.
Types of commercial organizations and their activities: Business partnerships
can be
established as general partnerships or limited partnerships, while business companies can be
established as limited liability companies, additional liability companies, or joint-stock
companies.
A business partnership is an association with the status of a contractual legal entity, formed to
carry out entrepreneurial activity of two or more persons acting on behalf of this partnership.
In accordance with Article 3 of the Law of the Republic of Uzbekistan "On Business
Partnerships" adopted on December 6, 2001, business partnerships are commercial
organizations that have a charter fund (charter capital) divided into shares of founders
(participants). In such a partnership, the founders (participants) or some of them personally
participate in conducting business activities on behalf of the partnership. A business partnership
is established for an indefinite period and may carry out any type of activity not prohibited by
law, unless otherwise stipulated in its founding agreement.
Business entities
, by their nature, are an organizational and legal form of capital consolidation.
Business entities, in turn, are divided into such types as limited liability companies, additional
liability companies, and joint-stock companies. Today, many enterprises in the trade, public
catering, and service sectors of the economy of the Republic of Uzbekistan operate as limited
liability companies (LLCs). Therefore, limited liability companies constitute a significant
portion of business entities. Small and medium-sized businesses constitute the majority.
Corporations in the form of limited liability companies
were invented by German legal
scholars. The main reason for their emergence was the changes that occurred in European trade
and industry in the 19th century. Joint-stock companies were excessively large, tolerant, and
unfavorable, making their application practically impossible in small and medium-sized
businesses. On the other hand, the possibilities for wider application of full partnerships were
also limited. Therefore, at the request of practitioners, a draft law on a limited liability company
was developed and adopted on April 20, 1892. Later, it began to spread widely in other
countries of the world.
The establishment and operation of limited liability companies are regulated by the Law of the
Republic of Uzbekistan dated December 6, 2001, "On Limited and Additional Liability
Companies."
A joint-stock company (JSC)
is a commercial organization that attracts capital through the
issuance of shares. The main feature of joint-stock companies is that they form their capital
through the sale of shares, and shareholders (persons providing the capital) receive their shares
from the organization's profits.
In foreign countries, commercial legal entities are established to effectively manage economic
activity, generate profit, and find their place in the market. The economic system, legal norms,
and market conditions of each country influence the formation and development of various
INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE
ISSN: 2692-5206, Impact Factor: 12,23
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Journal:
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forms of commercial organizations. The types of commercial legal entities abroad and their
legal structure, management model, and liability distribution mechanisms differ from each other.
Below is detailed information about the types of commercial legal entities in foreign countries
and their main characteristics.
Commercial organizations abroad are divided into several main types. They differ mainly based
on the legal form of the organization, the distribution of responsibility, and the formation of
capital. The most common types of commercial organizations are listed below.
In the United States of America, the types of commercial legal entities are widespread and
highly adaptable. The most common types of organizations are:
1.
Limited Liability Company (LLC)
LLC is a limited liability company, and the liability of its members is limited to the amount of
capital they invest. This type of organization is widely used in the USA for small and medium-
sized businesses. An LLC can be established by one or more individuals.
2. Corporation (C-Corp, S-Corp)
Joint-stock companies (Corporations) are very common in the USA. They have two main types:
C-Corp and S-Corp. C-Corp shares can be sold to the public, and shareholders are only liable
for the value of their shares. S-Corp is applied to small businesses, and the profit is distributed
directly to the shareholders.
3. Partnership
A partnership is a joint venture established between two or more individuals. In foreign
countries, this form is widespread in small legal firms and consulting companies.
In Great Britain, commercial organizations are established in many different forms, which is
connected with the country's economic system and business culture. The most common species
are:
1.
Private Limited Company (Ltd)
In Great Britain, "Private Limited Company" or "Ltd" is a limited liability company. In this
type of organization, the liability of members is limited to the amount of capital they invested.
Also, the company's shares can be sold in a limited circle.
2. Public Limited Company (PLC)
PLC is a joint-stock company that issues shares to the public. This type of company is often
used for large businesses, and their shares can be freely traded on the stock market.
3. Partnership
The partnership system is also well-known in Great Britain. This refers to commercial activity
carried out on the basis of a contract between two or more persons.
In conclusion, the types of commercial organizations and their activities differ among countries
and are finding their place in the processes of global economic integration. Mutual study of
foreign experience and legal forms is of great importance in the creation of effective business
models and the introduction of innovations. Thus, the types of commercial legal entities and
their legal structure are leading to changes not only in the national but also in the international
business environment.
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INTERNATIONAL JOURNAL OF ARTIFICIAL INTELLIGENCE
ISSN: 2692-5206, Impact Factor: 12,23
American Academic publishers, volume 05, issue 07,2025
Journal:
https://www.academicpublishers.org/journals/index.php/ijai
page 227
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