Legal Entities as the Main Participants in Business Activity in Russia and China

• Author: O. Berzin - E. Shliagina
• Position: National Research University Higher School of Economics (Nizhny Novgorod, Russia)
• Pages: 134-158

BRICS LAW JOURNAL Volume VI (2019) Issue 4

LEGAL EnTITIES AS THE MAIn PARTICIPAnTS In BuSInESS ACTIVITY

In RuSSIA AnD CHInA

OLGA BERZIN,

National Research University Higher School of Economics

(Nizhny Novgorod, Russia)

EVGENIIA SHLIAGINA,

National Research University Higher School of Economics

(Nizhny Novgorod, Russia)

https://doi.org/10.21684/2412-2343-2019-6-4-134-158

The legal entity is one of the most common forms of business activity in the Russian

Federation and the People’s Republic of China. The regulation of legal entities in Russia

and China has changed in recent years, which makes the study of this issue especially

relevant. This article explores and compares the concept of business activity, the system

of legal entities and several types of par ticular legal entities in regard to companies

found in Russia and China. The research concludes that the system of legal entities in

the Russian Federation has an exhaustive regulation that facilitates the interpretation

of the civil legislation and allows distinguishing the relevant characteristics of any type

of organization. In China, there was no unied system of legal entities until 2017. While

the General Provisions of the Civil Law of the People’s Republic of China adopted in 2017

is a serious and important attempt to establish a system of legal entities, the law does

not contain the essential characteristics of legal entities; additionally, a number of the

provisions of the legal acts in force devoted to the regulation of the activities of legal

entities have not yet been brought in line with the new law.

Keywords: business activity; legal entities; General Provisions of the Civil Law of the

People’s Republic of China; Civil Code of the Russian Federation; BRICS.

Recommended citation: Olga Berzin & Evgeniia Shliagina, Legal Entities as the Main

Participants in Business Activity in Russia and China, 6(4) BRICS Law Journal 134–158

(2019).

OLGA BERZIN, EVGENIIA SHLIAGINA 135

Table of Contents

Introduction

1. Denition of Business Activity in Russia and China

2. Legal Entities Exercising Business Activity in Russia and China

3. Companies in Russia and China: Comparative Analysis

of Legal Characteristics

Conclusion

Introduction

Understanding what modern legal families and legal systems are represents

one of the main objectives of legal theory in the 21st century. Yet, researchers often

come across visible and hidden language and cultural barriers. Without knowing

the historical, cultural and mental peculiarities of other peoples, the reasons why

an institution has been included in or eliminated from a foreign state’s legislation

cannot be determined.

Studying the legal systems of other countries is important for lawmaking, because

it can provide legislators a clue, based on another country’s experience, as to what

kind of legal practices are eective and can be borrowed or, conversely, what kind

of norms proved inecient and should be avoided.

So it is not surprising that the legislation of the People’s Republic of China (PRC) is

of special interest to researchers these days. This is due to a whole range of factors. First

of all, China is one of Russia’s major strategic partners. The long-standing cooperation

between the two countries based on the similarity of political courses is characterized

by a steady growth. Russia and China collaborate in various elds including trade and

economic relations, humanitarian work and international cooperation in organizations

such as BRICS, Shanghai Cooperation Organisation (SCO), Asia-Pacic Economic

Cooperation (APEC) and the World Trade Organization (WTO).1

The importance attached to Russian-Chinese bilateral contacts is also reected in

Russia’s legal acts. For example, the Russian National Security Strategy sets as its priority

the development of all-embracing partnership and strategic cooperation

with the People’s Republic of China, as it plays the key role in maintaining

global and regional stability.2

1 Irina Mikheeva & Anastasia Loginova, W TO Accession of BRICS Countries: The Chinese Experience, 4(1)

BRICS Law Journal 84, 98 (2017).

2 Указ Президента РФ от 31 декабря 2015 г. № 683 «О Стратегии национальной безопасности Рос-

сийской Федерации» // Собрание законодательства РФ. 2016. № 1 (ч. 2). Ст. 212 [Presidential Decree

No. 683 of 31 December 2015. On the National Security Strategy of the Russian Federation, Legislation

Bulletin of the Russian Federation, 2016, No. 1 (part 2), Art. 212].