The CC of the RF is the basis of the civil legislation which defines the legal status of the participants of the civil turnover, the grounds of emergence, and the procedure of the implementation of property rights and other real rights, rights for the results of intellectual activity, and means of individualization (of intellectual rights) equated to them, regulates the relations connected with the participation of corporate organizations or with their management (the corporate relations), contractual and other obligations, and also other property and personal non-property relations based on equality, an autonomy of will, and property independence of participants, (clause 1 of Article 2 of the Civil Code of the RF).
ii) The Civil Procedure Code of the RF
The Civil Procedure Code of the RF regulates the procedure of civil legal proceedings in the courts of general jurisdiction.
iii) The Arbitration Procedural Code of the RF
The Arbitration Procedural Code of the RF regulates the legal proceedings form in the arbitration courts. The arbitration courts in the Russian Federation administer jurisdiction in the sphere of entrepreneurial and other economic activity (Article of 1 Arbitration Procedural Code of the RF).
iv) The Tax Code of the RF
The Tax Code of the RF, as well as the CC of the RF, consists of several parts which represent separate federal laws, but collectively form a uniform code. However, unlike the CC of the RF, there are two parts (not four parts) in the Tax Code of the RF.
The Tax Code of the RF stipulates the basis of the legislation on taxes and levies which regulates "relations of power with respect to the establishment, introduction, and collection of taxes and levies in the Russian Federation, as well as the relations which arise in the process of exercising tax control, and appealing against acts of tax authorities and the actions (and inaction) of their officials, and imposing sanctions for the tax offences," (Article 2 of the Tax Code of the RF).
Other federal laws on taxes and levies have to correspond with the Tax Code of the RF (Clause 1 of Article 1 of the Tax Code of the RF).
v) The Land Code of the RF
The Land Code of the RF regulates the relations on the use and protection of lands in the Russian Federation.
The norm of the land law, as contained in other federal laws, in laws of the subjects of the Russian Federation have to correspond with the Land Code of the RF (paragraph 2, Clause 1 of Article 2 of the Land Code of the RF).
vi) The Labor Code of the RF
The Labor Code of the RF is the basic law regulating the relations between the employee and the employer, as well as between the employer and the state.
The norms of the labor law, as contained in other federal laws, have to correspond with the Labor Code of the RF (Part 3 of Article 5 of the Labor Code of the RF).
vii) The Criminal Code of the RF
The Criminal Code of the RF provides for criminal liability for serious offenses/crimes. The criminal liability for different deeds can be established only by the Criminal Code of the RF.
viii) The Criminal Procedure Code of the RF
The Criminal Procedure Code of the RF regulates the procedure for criminal legal proceedings in the courts.
ix) The Code of Administrative Offences of the RF
The Code of Administrative Offences of the RF provides for administrative responsibility for the deeds listed therein, and lists the bodies which are authorized to consider cases of administrative offenses. It also regulates the proceedings, as well as the execution of decisions on cases of administrative offenses.
Unlike the Criminal Code of the RF, the Code of Administrative Offences of the RF does not contain an exhaustive list of deeds which result in administrative responsibility. The structures of administrative offenses and sanctions thereof are fixed in other legal acts as well. Thus, part 1 of Article 34 of the FL on Protection of Competition provides for the possibility of compulsory liquidation of the organization, in case it was created without receiving a prior consent of antimonopoly authority, provided that the necessity of receiving such consent is defined by the law. Additionally, the administrative responsibility can be established by the laws of the subjects of the Russian Federation.
4.2.3. The Federal Laws
In addition to the codes which contain most general norms, the activities of the entrepreneurs in Russia are also regulated by the federal laws. Some of them are listed below:
i) The Federal Law on Joint Stock Companies,
ii) The FL on Limited Liability Companies,
iii) The FL on Registration,
iv) The FL on Advertising,
v) The FL on Licensing,
vi) Foreign Investment Law.
Sometimes, the word «legislation» does not only refer to laws, but also to any other legal acts. For example, Clause 6 of Article 1 of the Tax Code of the RF directly states: The laws and other normative legal acts which are referred to in this Article shall hereafter in the text of this code be referred to as tax and levy legislation.
Moreover, it is necessary to remember that legal acts such as the On Railway Transport Charter of the Russian Federation, (RTC) and the The Charter of Motor and Urban Surface Electric Transport, (MUSETC) are also federal laws, despite the existence of the word «charter» in their names. This type of a legal act as the charter, does not exist in Russia, whereas this word sometimes occurs in names of various acts (not only in federal laws). When determining the legal nature of a legal act, it is always necessary to refer to its type (federal law, decree, decision, etc.) and the adopting body thereof (The President of the RF, the Government of the RF, etc.). This determination is not made by the name of the legal act.
5. The Subordinate Legislation
5.1. Subordinate Legal Acts of Public Authorities
5.1.1. Acts of the President of the Russian Federation
The legal acts of the President of Russia follow federal laws in the hierarchy of legal acts. The acts of the President of Russia should not contradict to the Constitution of Russia and the federal laws (part 3 of Article 90 of the Constitution of Russia).
The president of Russia issues acts of two types: decrees and orders.[21] As a rule, orders, unlike decrees, do not possess a normative character. Currently, the President of Russia has issued a few acts which regulate entrepreneurial activities.
5.1.2. Acts of the Government of the Russian Federation
The Government of Russia issues decisions and orders. They should not contradict the Constitution of Russia, federal laws, and decrees of the President of Russia (Article 115 of the Constitution of the Russian Federation).
5.1.3. Acts of the Ministries
The federal ministries adopt acts (generally those are commands and orders), on the basis and in accordance with the Constitution of Russia, the federal laws, the acts of the President and the Government of Russia.
5.1.4. Acts of Federal Agencies and Services
In the Russian Federation, all federal executive authorities, except for the Government of Russia and the Ministries, are two types: agencies and services. Agencies carry out the functions of providing state services, of management of the state property, and law-enforcement functions. The main function of the services is the exercising of control and supervision in the established field of activity. Both agencies and services issue law-enforcement acts, as well as normative legal acts in certain cases.
Federal agencies and services issue a large number of legal acts, which regulate some issues of entrepreneurial activities in detail.
5.2. Other Subordinate Legal Acts
Apart from government bodies, the power of adoption of obligatory acts in Russia is possessed by such formations of sui generis, including:
5.2.1. Central Bank of the Russian Federation (Hereafter CBR)
The CBR carries out the regulation of banking activities, the financial markets, monetary, and currency regulation. Thus, the Bank of Russia in particular establishes the rules of the implementation of calculations within the Russian Federation, rules on carrying out banking operations, exercises regulation, control, and supervision in the sphere of the corporate relations in joint stock companies, defines the procedure of calculations with international organizations, foreign states, as well as with legal entities and individuals.
On matters relevant to the CBR Law and other federal laws, the Bank of Russia issues normative acts in the form of orders, rules, and instructions that are obligatory for federal public authorities, public authorities of the subjects of the Russian Federation, local authorities, individuals, and all legal entities.
5.2.2. State Corporations
State corporations, being structures of sui generis, can be provided with various powers, including powers on the adoption of normative legal acts (see, for example, Article 8 of FL on Rosatom).
Thus, Rosatom State Corporation on Atomic Energy adopted an order No. 1/19-NPA (as of December 6, 2013), which stipulates the obligatory forms of reports in the field of state registration and control over radioactive materials and radioactive waste, as well as the order and terms of providing reports.
6. Acts of the Subjects of the Federation
So far we have addressed only the federal legislation, that is the acts which are adopted by government authorities at the level of the federation. The subjects of the Russian Federation have the right to adopt legal acts on the matters listed in Article 72 of the Constitution, as well as on any other matters, except for those listed in Article 71 of the Constitution.
Russia is an asymmetric federation; it is composed of different types of subjects. There are six such types in total: the republics (the republic is a name of the subject of a part of Russia), the territories, the regions, the cities of federal importance, the autonomous region, and the autonomous areas. The subjects of all types possess almost identical legal status.
There are three cities of federal importance in Russia: Moscow, St. Petersburg, and Sevastopol. The aforementioned cities are separate subjects of the federation and, respectively, their bodies adopt legal acts of regional level.
6.1. The Competence of the Subjects of the Federation
According to Article 72 of the Constitution of the RF, the subjects of federation can adopt legal acts, particularly on the following matters:
i) possession, use and disposal of land, subsoil, water and other natural resources;
ii) demarcation of state property;
iii) nature utilization, protection of the environment and ensuring ecological safety; specially protected natural territories;
iv) establishment of common principles of taxation and levies in the Russian Federation;
v) administrative, administrative procedure, labor, family, housing, land, water, and forest legislation; legislation on subsoil and environmental protection.
Moreover, subjects of the federation can adopt legal acts on any other matter, except for those listed in Article 71 of the Constitution of the RF.
6.2. The System of Acts of the Subjects of Federation
6.2.1. Constitution (charter) of the Federation Subject
The system of legal acts of each subject of the federation also represents a pyramid, at the top of which is the charter or the constitution of the subject.
6.2.2. Laws of the Subject of the Federation
Thereafter, the laws of the subject of federation are located. The laws of the subjects often play an important role in the legal regulation of entrepreneurial activities in the given region. Thus, in many subjects, separate laws (codes) on administrative offenses are adopted. These laws provide sanctions for offenses. Moreover, the laws of the subjects establish the structures of administrative offenses which are not provided by the Code of Administrative Offences of the RF.
Such an act in Moscow is the Law of Moscow city No. 45 (as of November 21, 2007), "The Code of the City of Moscow on Administrative Offenses." In particular, it provides liability for such offenses, such as:
i) the implementation of small retail trade without documents confirming the right to placement of trade objects;
ii) illegal destruction of green plantations;
iii) excess in terms of design of the objects, and other excesses.
Moreover, in many subjects of the federation, legal acts are adopted with the purpose of supporting of small and medium businesses. The Law of City of Moscow No. 60 (as of November 26, 2008), "On Support of Small and Medium Businesses in the City of Moscow," is such an act in Moscow. This law regulates, in particular:
i) the procedure for providing to the subjects of small and medium businesses property, financial, information, consulting, legal, and other types of support (chapter 4 of the law);
ii) the procedure for rendering additional support to the subjects of small and medium businesses, which are carrying out activities in the field of innovation, industrial production, and other spheres (chapter 6 of the law).
The subjects of the federation adopt another set of laws, somehow affecting the interests of entrepreneurs.
6.2.3. Acts of the Highest Official of the Subject of Federation
The highest official is the head of the subject of the federation. In Moscow, the highest official is the mayor of Moscow. The legal acts adopted by the Mayor of Moscow (decrees) can not contradict the charter and the laws of the city of Moscow (part 8 of Article 41 of the Charter of the city of Moscow).
6.2.4. Acts of Other Public Authorities of the Subject of Federation
Other public authorities of subjects of the federation are the highest executive body of the public authority, as well as various departments, commissions, and similar bodies.
In Moscow, the highest executive body of the power is the Government of Moscow. Decisions and orders of the Government of Moscow can also affect the interests of businesses.
Other bodies of the city of Moscow, such as the Department of Trade and Services, can also adopt acts, which are significant for representatives of businesses.
Finally, in the administrative districts and areas of the city of Moscow, territorial authorities of executive power are formed this includes the prefecture of administrative districts and councils of areas, which also adopt acts that are obligatory for execution.
7. The Municipal Acts Regulating Entrepreneurial Activities
Acts at the municipal level in the Russian Federation are also built in a certain hierarchy. The charter of municipality stands at the top of the system, the acts of the representative body (local parliament) are located a step below, the acts of the head of municipality are another step below, and finally the acts of other authorities are at the lowest level.