What is a moral person?
As a moral or legal person, it is designated, in law, any entity of legal existence, which is constituted by groups or organizations of peopleand which is recognized as a unitary instance with the capacity to exercise rights and contract obligations.
The moral persons They have no material or concrete existence; They do not exist as an individual but as an institution, since they are a fiction of law to give recognition to an individual and independent entity, which is subject to obligations and endowed with rights, just like a natural person.
In this sense, the legal person It is an organization made up and represented by a group of natural persons on which the decision-making capacity rests. To do this, the legal entity will have one or more administrators, a board of directors or a board of partners who will have the responsibility of acting on its behalf.
The moral or legal person It is constituted by a legal act before an authorityin which, through the creation of a public deed, the rules and statutes by which it will be governed and the rights and obligations it will possess are established.
According to law, legal entities have their own legal personality, which means that they are capable of acting as a subject of law: acquire property, contract obligations, exercise actions before a judge.
Legal entities are characterized by having domicile, name, capacity and assets. They are legal entities, for example, associations, corporations, societies and foundations.
Legal entities are characterized by having domicile, name, nationality, capacity and assets.
For exampleare moral or legal persons:
sole proprietorships, commercial companies, foundations, civil associations, corporations, state-owned companies, non-governmental organizations (NGOs), unions.
Attributes of legal entities
In law, the characteristics of legal entities are known as attributes, which are name, domicile, nationality, capacity and assets.
Ability
Capacity is the attribute that confers on the legal entity a set of rights and duties. It means that the legal entity is authorized to exercise its rights and fulfill its obligations.
Name (name or company name)
It refers to the name that identifies the legal or legal entity. There are two modalities: the name and the company name.
Denomination: It is the fictitious name by which the legal entity is known. For example: Pastry What butter! SA
Business name: It is the name made up of the surnames of one or more of the partners. For example: Santander-Totta Group.
Nationality
Legal entities must have a declared nationality. This is done in order to know to which government and system of laws they must respond and pay taxes.
Home
The domicile is the place where the legal entity must fulfill its obligations. In other words, the domicile is the place where the administrative headquarters of the legal entity is located.
Heritage
Assets are the set of assets and means that the legal entity has to fulfill its obligations. It includes capital, machinery, materials, instruments, tools and all kinds of inputs.
Types of legal entities
Moral or legal persons are classified as legal persons under public law and legal persons under private law.
Public legal entities
Legal or moral persons under public law are those that represent State entities. Its purposes are of public interest.
They are legal entities under public law:
the State, the municipalities, the departments, the decentralized or autonomous organizations, the industrial and commercial companies of the State, the public corporations.
For example, the Andean Development Corporation (CAF) and the Catholic Church with legal entities under public law.
Private legal entities
Legal or moral persons under private law are those that represent private or particular interests. Its purposes are general and, therefore, varied.
Consequently, there are two types: for-profit legal entities and non-profit legal entities.
For-profit legal entities. They are those intended for the generation of wealth.
They are for-profit legal entities:
sole proprietorships, civil partnerships, commercial partnerships, corporations.
For example, the McDonald’s SA Restaurants companies; PepsiCo Inc., and Procter & Gamble Co.
Non-profit legal entities. Its purpose is to promote social causes and defend rights of different kinds, such as culture, health, sports and social equality, among others.
They are non-profit legal entities:
foundations, civil associations, non-governmental organizations (NGOs), unions, non-profit corporations.
For example, heThe Friends of Children with Cancer Foundation, the Spanish Section of Amnesty International, the NGO Greenpeace, the International Trade Union Confederation (CSI).
Difference between legal person and natural person
The difference between a moral and a physical person lies in the fact that the former does not have a real and concrete existence, while the latter does. This means that the natural person is a human being, while the legal entity is a legal entity that acts on behalf of natural persons.
Regarding its capacity to act, the legal entity can only carry out the economic activities established in its statutes. On the other hand, the natural person can carry out any activity.
Likewise, the legal entity assumes responsibility for any action instead of its owners or partners. Therefore, debts are limited to the company’s assets. This guarantees the economic protection of the owners.
On the other hand, natural persons must take care of debts on account of their personal assets. That is why your responsibility is unlimited.
Finally, a legal entity can be established as a corporation, individual limited liability company or limited liability company, among others. On the other hand, a natural person can only operate as an individual company.
See also: Natural person.