Who is natural person

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A natural person remains the same; they simply acquire the status of merchant due to their execution of a commercial activity in a professional manner. A legal person, once incorporated, is a person that is different from the individuals that comprise it. A natural person always acts with their personal name, although they can use a different name when registering the commercial establishment. Since a legal person is an entity independent from the partners, it has its own name and must act as such, without having to identify the individuals that comprise it.

The natural person acts on their own, while the legal person must act through their legal representative to enter into obligations, as well as to execute acts that are specific to business owners. A natural person is identified by their national identification number, and the DIAN assigns them a NIT, which is the same national identification number with one additional digit; a legal person is identified by the certificate of existence and legal representation, and the NIT that the DIAN assigns.

A legal person has their own equity, which is independent from the partners' equity; therefore, in order to fulfill the obligations a company is required first, in order to respond and comply with its equity or otherwise its partners. Natural person means a natural person, or a holding company , investment vehicle or trust for, or owned and operated for the primary benefit of, a natural person.

Natural person means an individual who is not an association , joint venture or joint stock company , partnership, limited partnership , business corporation , nonprofit corporation , other business entity , or any group of individuals or business entities , however organized.

Examples of Natural person in a sentence These rules are only briefly outlined below:— Natural Person : Some evidences can only be issued for natural persons but they are not available for organisations. Natural person means a national or citizen of a law and regulations.

Natural person means any person at least 18 years of age. Subtantive rights: This refers to the effectiveness of the law to protect the legal entity.

In effect, legal personhood endows the subject with certain legal rights and obligations within a particular legal system, e.

Legal personality is a prerequisite to legal capacity, the ability of any legal person to amend enter into, transfer, etc. These include the theory of affectation, apparent subject theory, atomistic theory of the state, fiction theory, theory of legal action, and the corporate veil theory.

This theory takes claims that the protection given to the legal relationship between a material good and a person is the same as the protection given a legal relationship created between an asset and its purpose. According to this theory, there are no elements to identify what is legal personhood. However, an inert asset is not susceptible to creating a legal relationship. Doing this requires either a natural person or juridical person with free will.

In order for a subject of law to have a legal manifestation, it requires free will since this is necessary to have a legal effect and also has the added effect of distinguishing it from the other parties involved in that legal relationship.

This theory was developed by Rudolph Von Ihering, 31 who holds that law consist of two elements. One is substantive, involving a specific purpose and the use or enjoyment of something with economic or moral value. The other is formalistic and refers only to the protection of that right. A natural person only has legal personhood to the extent that he or she is the sole recipient of these protected interests, which legal entities lack.

Corporate personhood is a concept not exclusive to humans, since personhood cannot stem from the will of natural persons as there are many who lack it. However, they remain individuated as holders of rights and obligations.

Despite the fact that juridical persons have their own interests or rights, personhood is not based solely on laws that grant these interests or rights.

Rather, the person is the legal subject or substance of which rights and duties are attributed. Many basic human rights are implicitly granted only to natural persons. For example, a law that prevents discrimination or forbids the government from denying certain rights based on gender, apply solely to natural persons.

Another example of the difference between natural and legal persons is that a natural person can hold public office, but a corporation cannot. Lingg, 34 who advocated this theory, starts with the idea that only human beings are real and can perform labor; ergo legal personhood can only be ascribed to individuals and not states. The legal business entity in private law is conceived as a state of being governed by the legal system.

This doctrine considers personhood as the existence of a number of individuals exercising their powers in pursuit of a common goal and recognized by applicable law in the same manner as if they were a single person. This situation emerges by linking that statement with a factual situation recognized by the legal regime as a factor of individualization of the entity with free will, without implying that this sole statement can create personhood, given that one requires both recognition by the legal regime and free will of the entity that the regime individualizes.

Friedrich Carl von Savigny 35 theorized that only a natural person is capable of exercising rights and obligations. This is considered to be the oldest and most prevalent theory in Germany since the mid-nineteenth century and Italy and France since the mid-twentieth century. In fiction theory, the juridical person or corporation is an exception to the rule that only natural persons can exercise rights and obligations. This exception is facilitated by a legal fiction that recognizes the artificial capacity of a fictitious entity to possess or own goods.

Savigny defines the legal entity as an artificially created subject of property 37 and that this entity develops its capacity or legal personhood only through property ownership. Property is the means to achieve the objectives for which the legal entity was created. In sum, the fiction theory equates personhood with the ability to exercise certain rights.

It similarly compares legally incapacitated natural persons with juridical persons, given how both fictional subjects of law and natural persons suffering from capitis deminutio cannot, by themselves, exert their will within a legal relationship and instead require a representative to exercise their rights granted to them by law. In discussing corporate personhood, Ferrara 38 asserts that juridical persons are not things but rather a state of being.

In a sense, legal personhood is like an organic garment with which certain collectives or organizations clothe themselves, a configuration used for the purpose of engaging in commerce. For this reason, there is no substantial difference between informal associations those unrecognized by law and corporations.

In both cases, the subject matter is the same and the act of recognizing either's legal personhood has no value other than to provide the natural persons involved with the most appropriate type of legal status. As this paper attempts to clarify, juridical persons are not created by law but recognized as legal entities with already existing rights and obligations. This recognition forms the basis for their legal personhood.

The German 40 jurist Serick is credited with pioneering the study of law by systematically analyzing previous court rulings. The doctrine of piercing the corporate veil originated in American law as the disregard theory 41 or the doctrine of corporate disregard. In so doing, they injure the interests of others and flout the law. In English law, Gower 45 distinguishes cases in which the corporate veil is pierced into four categories: 1 tax-related cases; 2 companies involving a single owner; 3 the use of corporations for fraudulent purposes; and 4 cases involving subsidiaries and holding companies.

In a harsh criticism of corporate personhood, supporters of the contractual theory yexactinve scrutity, especially if the protection provided by its legal personhood is abused. In Mexican law, the application of the corporate veil theory, abuse of legal personhood, elimination of personhood, and veil lifting to mention just some of the names that this theory is known by imply a lack of such personhood, an essential element of the corporation.

Accepting the application of the corporate veil theory necessarily involves denying that corporations possess rights other than those held by the partners who established it. This conflicts with the principle contained in Article 2 of the Law of Mexican Corporations, according to which legal personhood is recognized for both regular and irregular corporations, with the caveat that this second type is required to hold itself out as a corporation to third parties.

The requirements that help create or establish legal personhood are:. First, the involvement heritage theory, the apparent subject theory, the atomic state theory, and the fiction theory regard legal personhood as something natural to man, which is why these theories generally use the terms person and personhood synonymously, even when they are different.

They similarly amalgamate personhood with free will or capacity. That is why these theories claim that only natural persons have true personhood, since only individuals have free will. In this way, collective entities are a legal fiction. Unlike these theories, the legal action theory recognizes the legal entity, distinguishing between the person and personhood.

In order to identify the subject of law, three requirements must be met: a The existence of a subject of law,. A factual situation that individualizes it in terms of the ownership of rights and fulfillment of obligations, and.

The recognition of that individualization by existing law. In sum, legal personhood arises when a legal construct becomes a reality. That legal construct pertains to a particular factual situation in which the subject of law or an undetermined person finds itself individualized as the holder of certain rights and certain obligations in a legal relationship.

In Mexican commercial statutory law, there is no provision defining legal personhood even though this term is employed, especially in adjectival or procedural aspects.

In this way, legal rulings about legal personhood usually do so in terms of the requirements that must be met for a person to intervene in a particular act or business transaction. In other business laws, 47 the term legal personhood is used to refer to the fact that certain state-owned entities that regulate the operations of business have legal personhood, though these laws do not specify what this means. When legal personhood is mentioned in legislation, it is generally done so in a negative way; i.

This suggests that people should demonstrate the existence of that element in order to perform certain legal actions. The Commercial Code 48 does not include any definition of personhood, but nonetheless explains its meaning by requiring judges to examine each respective party's personhood.

They even provide litigants that a litigant can challenge the opposing party's personhood when it appears that the plaintiff or defendant lacks a legal prerequisite. Based on an analysis of diverse business laws, we can conclude that the concept of legal personhood suffices for the practical applications for which it is used. Based on criteria set forth by the Mexican federal courts, there is no clear concept of what constitutes legal personhood.

For a business association involved in a legal proceeding, it is necessary to demonstrate two personhoods: that of the association itself as a legal entity and that of its representative who must demonstrate that he or she has sufficient authority to act on behalf of the entity. However, there are other criteria 50 in which the personhood of the representative of a legal person continue being seen as an outgrowth of its principle.

Given the absence of uniform criteria in Mexican law, the personhood of business entities or corporate personhood remains a matter of dispute. Based on these provisions, it is clear that the constitutional text refers to those who possess individual rights, including both juridical persons and natural persons. Then, it follows the main element recognizes the legal person is related to the subjective rights and guarantees enshrined.

This law considers the following as juridical persons: the nation, states, municipalities, public organizations recognized by the Code, professional associations, and others entities referred to in Section XVI of Article of the Federal Constitution; mutual cooperative associations; other associations with diverse political purposes; organizations devoted to scientific, artistic, recreation or any other lawful purpose not unknown to law; and private foreign legal entities.

Under the provisions of the Federal Civil Code that governs the person being studied in this paper, the following elements are apparent: substantive rights, obligations and free will. Corporate statutes 52 that refer to natural persons or juridical persons classify both under the rubric of merchants, which consist of objective and subjective criteria for the former, and formalistic criteria for the latter. The Commerce Code's merchant classification of the legal entity and corporation is a result of its legal status, as with the Federal Labor Act, which classifies workers as natural persons who provide personal services and are subordinate to another natural or juridical person that pays them a salary.

Therefore, the characteristic that follows from the Comerce Code is the legal personhood of the corporation, which is a characteristic that allows the corporation to identify itself as a merchant.