Sometimes it is difficult to know what our relationship as citizens is with the legislation, and differentiate it from our relationship as entrepreneurs, employees or freelancers. Even though the legal world is very complex, in this post we want to talk about the concept legal person and differentiate it from what is understood as a natural or natural person. From here it is easy to understand what their rights and obligations.
Legal person
A legal person is that 'individual' subject to rights and obligations but who does not exist as a natural person but has the form of an institution, and is formed by one or more natural persons. For this purpose we can differentiate between individual legal persons or collective legal persons.
Therefore, the legislation recognizes as legal personality something that transcends the natural person. And for this case it can be a association, company, person or any other person or persons with or without profit motive.
Natural person vs. Legal person.
And what is the difference with the Physical person? Well, in the case of natural persons, they are the ones who personally assume the obligations and on whom their rights fall. If a natural person creates a company, the ultimate responsibility for its exercise is himself. On the other hand, in the case of legal person It is this fictitious entity that assumes the responsibilities and obligations.
Therefore, if a group of people creates a company with legal personality It is this company that has the ultimate responsibility, not its entrepreneurs, and therefore the guarantee falls on the assets of this company.
Once this is said, Who is a natural person and who is a legal person? A natural person can be any person, from a company employee, a self-employed person or even an individual entrepreneur. On the other hand, a legal person is corporations (large brands, chains, etc.), associations or foundations.
Both have their pros or cons but the important thing is to adhere to what the legislation dictates. By way of example, in the case of wanting to establish a legal entity, the required documentation is very complex, and this in several cases represents a difficulty. Just as it is more difficult to dissolve.
LEI code
the LEI code It is a global code that is used to identify the legal entities that participate in a financial transaction. As we have discussed, legal entities need more complex procedures. Behind a financial transaction it must be feasible to identify a person responsible, and it is the LEI code the one that enables legal personalities to execute them.
This code is used to identify the contracting parties of these transactions, from this dynamic transparency and security between entities is guaranteed. There is a specialized entity, the Local Operating Units, which is responsible for granting an identifier to all entities that request it and thus being able to carry out legal transactions as a legal entity.
the right It can be tricky when you want to start a business, but it is as simple as understanding its terms.
