Non-commercial legal entity: Is there a profit objective?

Question:Whether a legal entity seeking profit can still be considered a non-commercial legal entity? What are the legal regulations? And which organizations are included in non-commercial legal entities?Answer:According to the relevant provisions of the law, a legal entity that seeks profit is not considered a non-commercial legal entity. The legal regulations specify that non-commercial legal entities are those which are not established for the purpose of generating profit for distribution among members.Non-commercial legal entities include organizations such as:- State agencies;- Political organizations;- Socio-political organizations;- Professional agencies and organizations providing public utility services;- Other organizations that do not fall under the classification of commercial legal entities as defined by law.These entities operate to serve the public interest, societal benefits, or other non-profit purposes.

Pursuant to Clauses 1 and 2 of Article 76 of the Civil Code 2015, it is stipulated as follows:

A non-commercial legal entity is one that does not have as its primary goal the pursuit of profit; if there is profit, it must not be distributed among the members.

Thus, a non-commercial legal entity can still have cases of profit generation. However, this profit must not be distributed among the members.

Non-commercial legal entities include state agencies, people's armed units, political organizations, socio-political organizations, socio-political-professional organizations, social organizations, socio-professional organizations, social funds, charitable funds, social enterprises, and other non-commercial organizations.

Respectfully!

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