What is a legal entity/person

A legal entity, also known as a legal person, is a term used to describe a legal subject that is not a physical person, and that outwardly represents a separate entity that is allowed to enter into agreements as if it were a real, physical person.

legal entity, also referred to as a legal person, is a legally constituted organisation that holds distinct identity from its members or owners and possesses capacities similar to those of a natural person. This means that a legal entity can enter into contracts, incur debts, and be answerable in lawsuits, separate from the individuals who constitute or manage it.

Examples of legal entities or persons include:

  • state, municipality, county municipality, and organizations subject to these
  • businesses such as AS, cooperatives, and others
  • foundations

A practical consequence of an organization being considered legally as a person is that this entity can be a party to legal disputes and lawsuits, both as a plaintiff and a defendant.

Legal entities or persons are therefore financially and legally responsible for themselves.