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A local enterprise is an economical enterprise, which is operated by a municipality. To define are local enterprises of the public mechanisms.
Regarding the economic manipulation of the local enterprises large task variety is recognizable. Often they notice en and tasks of disposal (public utilities, disposal enterprises). In addition, infrastructural (suburban traffic), structure-political (promotion of economy development companies), social (obstruction work enterprises, hospitals, nursing homes, dwelling switching companies), politico-economic (participation in savings banks), technical (data processing centers) and ecological (horticulture enterprises) tasks are covered by local enterprises. Often local enterprises notice an activity, which is generally characterized with the term precaution for existence.
In the local orders of all German Lands of the Federal Republic however regulations, which set limits following "§ 68 of the German Gemeindeordnung (DGO, are) of 1935 of the economic manipulation of the municipalities (e.g. "§ 108 Nds. GO; "§ 107 GO SIZE; "§ 87 Bay GO). The here central condition is the connection to a public purpose. Purely acquisition-economical manipulation, with which the winner managing is the only purpose, is forbidden to the local enterprises thereby. In the today's times of scarce cashes this is one of the local economy criticized and often ignored a condition sharply.
On the right of and organization forms of the local enterprises are very multiform. They can in the public legals form of a public utility, own establishment or an institute of the public right (see also local enterprises), in addition, in the legals form under private law of a GmbH, a non-profit GmbH (gGmbH) or corporation (AG) to be organized. In more recent time the value the GmbH under private law rose strongly. The choice of the legal form is an originally local-political decision in the context of the municipality autonomy, which is only examinable also limited by the supervisory authority.
Since the economic manipulation of the municipalities must be controlled by a locally extracted the root public interest purpose, the task responsibility must remain at the municipality. This must secure itself independently of it, which legal form was selected, one appropriately influence on the activity of the local enterprise. This so-called Ingerenzpflicht results also from the democracy principle, because local enterprises with public funds finally operate, over whose use of the taxpayers by means of its democratically legitimized decision makers account must require and be able influence to exert. Here pretty often problem areas result, if as legal form a GmbH under private law were selected and also private shareholders are taken part. The object of the company aligned to the public purpose must be called anyhow in the articles of association.
With local enterprises the realization of profits may not only be principal purpose of the manipulation contrary to purely private enterprises. Also they are subject however in principle to the economy principle. A reciprocal effect, in addition, a tension between the company target of the fulfilment of public tasks exists on the one hand and the economy principle on the other hand. Local enterprises are stopped to carry out a given goal at as small an expenditure of means as possible.
Local enterprises keep house in the long run with public funds; managing in the public area contains therefore a special responsibility, which is expressed in the fact that to their Finanzgebaren of special regulations is subject to accounting and control, in addition, a certain transparency.
Regarding the taxation of the local enterprises enterprise is to be differentiated with respect to private legal form between enterprises with respect to more public and. To the taxation of local enterprises in private law form the right valid for private ones applies accordingly. With public enterprises is not the organization form, but the kind of the activity of crucial importance. They are subject to the body and value added tax if they are as enterprise of commercial kind (BgA) too qualify.
The cities and municipality its own and Regiebtriebe are not insolvencyable inclusively in Germany in all rule. The municipality is responsible therefore in principle without reservation for all commitments. Local enterprises in private legal form are subject against it to the insolvency law and are insolvencyable. In what respect the municipalities are responsible for their local enterprises in private legal form directly or in the sense of a reaching through adhesion, is in detail disputed.
Local enterprises in public legal form are not insolvencyable, because their local legal entities must be responsible for them (so-called guarantee carrier adhesion). That leads with the public savings banks allegedly to competition distortions on European level, because thereby the Rating of the public savings banks is better than that of the private-economically organized banks. The public come therefore allegedly to more favorable refinancing conditions. From these Europeanlegal competition criteria for the savings banks and banks into public working group is abolished shortly the guarantee carrier adhesion.
The answer of the questions of the personal, serving, and industrial law of public enterprises depends also on the respective organization form. In regard pertaining to labour law local enterprises in Germany are subject usually ASKED, what however not is compelling. Also with public enterprises a Personalvertretung is prescribed in accordance with condition of the personnel agency laws.
In the last years both from considerations of profitability and from savings obligations a progressive privatisation of public tasks is to be observed. This trend is welcomed from liberals and/or neoliberaler view, encounters however from budgetistic and socialnational view also criticism. In the long run it is often inevitable in addition, due to Europeanlegal defaults to diminish the local enterprise participation and due to the weak financial situation is forced the municipalities to separate from enterprises strongly involving a loss to.
In addition, apart from the privatisation thrust for the nineties that the municipalities, and/or their enterprises co-operate increasingly also purely private enterprises, she is to be observed also as shareholders and backers takes up, them special infrastructure projects left or to other forms of the so-called Public private Partnership koooperieren. Also in it a privatisation can be partly seen, if for instance a before times public enterprise is out-arranged as GmbH and private backers as a shareholder is taken up and thus also certain influence on the enterprise to win.
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