A legal entity is an artificially created entity that has been established in a lawful manner and can be uniquely identified. The establishment of a legal person requires a written contract or a charter, unless a special law provides otherwise. Thus, a legal person is, for example, a limited liability company that is registered in the Commercial Register and has its own ID number.
Who acts for a legal entity?
Each legal entity acts under its own name, may enter into legal relations and assume rights and obligations. Legal persons have legal personality and are capable of legal acts from the moment of their creation. The so-called statutory body or authorised employees or members act on behalf of the legal person.
Categories of legal entities
There are two basic categories of legal persons, namely corporations and foundations. The difference is whether the legal person consists of people or things. A corporation (e.g., partnership, association, cooperative) is made up of a community of persons who come together to achieve a common goal. In the case of a trust, it is a special purpose association of property that is set aside for a specific purpose. Specifically, it may be, for example, a foundation or endowment fund.