Tiếng ViệtPerhaps many of you have heard the term legal entity and use it in your daily life and work. You also think that a legal entity is simply an organization, a company. For example, the company you are working for is a legal entity. It is also partly true, but today I will analyze it more clearly for you to understand what a legal entity is.
This is a concept in the civil law industry, a legal person is an organization arranged according to a certain structure and form and fully qualified as prescribed by the law on legal persons.
So what are the conditions of a legal entity?
According to Clause 1, Article 74 Civil Code 2015, an organization recognized as having legal status must fully meet the following conditions:
– Established under the provisions of this Code and other relevant laws.
– Having an organizational structure as prescribed in Article 83 of this Code
– Having assets independent of other individuals or legal entities and taking responsibility for their own assets.
– Independently participate in legal relations on their own behalf.
Thus, we can understand the above 4 conditions in detail as follows:
Legally established
A legal entity is considered legally established if it is established in a sequence corresponding to the nature of that type of legal entity. For example, a legal entity is a state agency or organization that must be established under an administrative decision of a competent state agency. Or if the legal entity is a private economic organization, it must be established on the basis of an enterprise registration dossier sent to the business registration agency under the Department of Planning and Investment to be granted an enterprise registration certificate.
On the other hand, it is also considered to be legally established only if such legal entity is established by a competent state agency or person according to the order and procedures prescribed by law.
Has a strong organizational structure.
The legal entity must be arranged in a certain organizational form, including specialized units and different tasks, but between these units there is always a close relationship with each other and the activities of all units. These are all towards the fulfillment of the common task of that legal entity. During the operation, the duties of each member, each unit may be independent relative to other members and units, but they are all under the unified leadership of the executive body of the legal entity.
Having property independent of other individuals or legal entities and taking responsibility for that property.
A juridical person must have property under its ownership in order to perform its obligations and responsibilities arising from the relationships in which the juridical person enters into.
In case the legal person is a state agency or organization, the property of the legal person belongs to the state. Therefore, in order to be considered independent assets, these legal entities must be assigned the management right by the State over a certain amount of property. This property must be present, under the management of the legal entity and have sufficient grounds to distinguish it from the property of other individuals, legal entities or organizations.
Independently participate in legal relations on their own behalf.
In order to independently participate in legal relations on its behalf, a legal person must have factors that make it possible to personalize it (distinguishable from one legal entity to another) such as: name of the legal person, the head office of the legal person, etc.
All natural and juridical persons have the right to establish a juridical person as long as the above conditions are met, unless otherwise provided for by law.
