Legal Person (or just a Person) is a legal term comprising any human or non-human entity (company, association, state organization, etc.) having its rights and obligations.
Most countries and legal systems distinguish two types of legal personality:
- Natural Person (people) - this form of legal personality comes into existence when a person is born and ceases to exist when the person passes away. People can not give it up or otherwise get rid of it.
- Juridical Person (organizations and businesses) - legal personality is created on the day the company is founded and comes to an end on the day when the life of the organization or business is ended (in accordance with the laws of the country where the company was founded)
Why do we need to define legal person?
It is a legal concept - a legal personality is subject to law. This means that the legal person has its rights and obligations. Beside other things, a legal person can enter into contractual relations, bears the consequences of its actions, may sue another person and can be sued.