Natural Person and Legal Person information: We explain what a natural person is, their differences with a legal person, and the characteristics of both.
Natural Person and Legal Person
In the legal and administrative field, a distinction is often made between a natural person and a legal person. Both are individuals capable of carrying out transactions, invoking legal rights, or even committing crimes.
This distinction lies in the very nature of the individual. It is fundamental when establishing their rights, duties, and the procedures in which they may be involved. Must Read About Family Law Once.
Thus, a natural person is any member of the human species capable of acquiring rights and incurring obligations. These are individuals with real, tangible, conscious, and autonomous existence, subjects of rights before the law.
Depending on the legal system, absolutely all members of the human species may fall under this concept, whether they have been born or are yet to be born. This concept is the basis of numerous debates regarding the origin of fundamental human rights.
Any human being we can think of serves as an example of a natural person, as long as they are alive and enjoying their fundamental rights. The dead were once natural persons, but they no longer exist.
On the other hand, a legal person or legal entity is an individual with verifiable legal existence, that is, endowed with rights and duties. It does not exist in the same way as a natural person; rather, it is an institution or organization created by natural persons to fulfill a social objective (for profit or not). Must Read About Greek Gods Once.
Legal entities can be composed of a group of natural persons, as well as a set of assets assigned as common property.
These types of entities arise from a legal act or act of incorporation, or due to recognition by some other institution, authority, or administrative body of the State. Examples of legal entities include public and private companies, non-governmental organizations, foundations, and the State itself.
This distinction between natural persons and legal entities can also be expressed in the terms individual legal entities or collective legal entities, respectively.
Natural Person and Legal Entity
These terms are basically synonyms for natural person and legal entity, respectively. They differ legally and fiscally in the following ways:
Name
While natural persons simply use their name and identification number to complete procedures and submit declarations, legal entities, on the other hand, are distinguished by a corporate name, which refers to the activity the company or organization carries out.
Tangibility
Natural persons, made of flesh and blood, possess a mobile and tangible body, while legal entities do not. However, both can exercise rights and own property, in accordance with the law.
Legal Limitations
Each case has its limitations according to current law, such as the age of majority for legal procedures in the case of individuals, or a higher tax burden and stricter formal requirements in the case of legal entities.
Different Tax Regimes
The State does not tax individuals and legal entities in the same way and according to the same rules, generally benefiting the former. Must Read About Greek Goddesses Once.
References
All the information we offer is supported by authoritative and up-to-date bibliographic sources, ensuring reliable content in line with our editorial principles.
- “Natural person” on Wikipedia.
- “Legal person” on Wikipedia.
- “Differences between a natural person and a legal person” (video) on PQS.
- “Natural person versus legal person” on Natural Person versus Legal Person.
- “What are the differences between a natural person and a legal person?” on the Bogotá Chamber of Commerce.
