Founding documents of an enterprise

An enterprise’s activity begins with preparing the founding documents: a legal entity operates on the basis of a charter, or a founding agreement and a charter, or only a founding agreement (which one, the law sets by form). The founding agreement is concluded by the founders, the charter is approved by them. A charter usually states the organisational-legal form, name, address, size and composition of the charter fund, the procedure for forming it, the profit distribution procedure and the conditions for reorganisation and liquidation. The charter fund is the set of money and material funds the founders first put in; for some forms the minimum amount is set by law, for others (for example the private enterprise) it is not, so the current law must be checked. In the founding agreement the parties undertake to create the enterprise and agree on contributing property, sharing profit and loss, management and leaving the company. To make the enterprise recognisable a logo (the name in a special style), a company mark (a separate pictorial element) and a trademark (a registered sign distinguishing goods) are used; a trademark that is widely known and holds a significant part of the market is called a brand. A slogan is a memorable advertising formula. A registered trademark is marked ®, an unregistered one usually TM; using ® for an unregistered mark is wrong.