A unitary enterprise is recognized as a commercial organization that is not vested with the right of ownership of the property assigned to it by the owner. Only state and municipal enterprises may be created in the form of unitary enterprises. The property of a unitary enterprise belongs by right of ownership to the Russian Federation, a constituent entity of the Russian Federation or a municipal entity.
On behalf of the municipal entity, the rights of the owner of the property of a unitary enterprise are exercised by local self-government bodies within the scope of their competence established by the acts determining the status of these bodies.
The property of a unitary enterprise belongs to it by right of economic management or by right of operational management, is indivisible and cannot be distributed by contributions (shares, units), including among the employees of the unitary enterprise.
A unitary enterprise is not entitled to create another unitary enterprise as a legal entity by transferring to it part of its property (a subsidiary enterprise).
A unitary enterprise may, in its own name, acquire and exercise property and personal non-property rights, bear obligations, and be a plaintiff and defendant in court.