“Juristic Person”

believes that the term has passed through many people’s ears, perhaps both in business and legal circles. Today we are going to understand what this word really means. To what extent is there?

Juristic Person

Juristic person means a person who, by law, assumes the same status as a natural person, and therefore a legal entity has the same abilities as a natural person, such as:

  • Ability to make contract law
  • The right to own property such as land, money.
  • Duty to pay taxes
  • Becoming a creditor to a debtor

Juristic persons can only exist according to the categories prescribed by law. To ask what constitutes a legal entity? It’s important to see what the fictitious law gives as a legal entity. The law can make anything a legal entity. There are many legal entities, so there are two types of legal entities:

1. A juristic person under private law is a juristic person defined in the Civil and Commercial Code.

  • Limited Company
  • Limited Partnership
  • Registered Ordinary Partnership
  • association
  • foundation

2. Juristic persons under public law are juristic persons defined in other public laws, which are numerous, such as temples, provinces, ministries, bureaus, departments, public organizations, etc.

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Limitations of legal entities

Normally, a legal entity has the same rights and duties as a natural person, but there are certain rights and obligations that, by the condition, are only available to natural persons. Legal entities cannot, for example, legal persons cannot register marriages. Furthermore, the condition of a legal entity cannot decide anything on its own, because without the brains of a natural person, a legal entity will have its abilities, rights, and duties within the scope of the entity’s objectives, and will express its rights and duties. Representative of a legal entity The purpose of a legal entity is the aim or scope of the power of a legal entity.

Entity condition begins from

When registered by law If it is a legal entity under private law, when the Act establishing the legal entity comes into force. If it is a legal entity under public law, the domicile of the juristic person is the location where the head office is located.

Taxes related to Juristic Person

After registering a company, there are 5 types of taxes that must be properly paid:

1. Corporate income tax

2. Withholding tax

3. VAT

4. specific business tax

5. Stamp duty

Details of each tax can be found here

How to change a business from an individual to a juristic person?

At the beginning of doing business, you may choose to register an individual because doing it alone is more convenient both in terms of making decisions and not having to share profits with anyone, but once you’ve been running a business for a while, the business is going well, there are people who are interested in investing more in you or you have plans to expand it. It takes more budget, so it is necessary to find more people to invest in. Once you know that the business has those needs. The next thing you need to do is proceed with the registration. Therefore, today, before going to registration, I would like you to look at the information that we have brought to you. Here are some advantages:

  • Many people may experience business losses in their first year or so, which is not a good thing. But in terms of taxes, you don’t have to pay taxes. Because revenue is calculated based on the actual revenue of the entire business. This is one of the advantages for registering as a legal entity.
  • If you want your company to be credible, you need to register as a legal entity.
  • Your money will be more systematic. Between the personal money of the business owner and the money spent on running the business is clearly separated.
  • If one day the business goes bankrupt, it does not mean that you will lose all your assets. Because you still have an entity or company as collateral.

It will be seen that registration or conversion from a natural person to a legal entity. There are many procedures and taxes involved. Plusitive Accounting has an experienced team in this area, from company registration services to comprehensive auditing and tax filing. You can get advice from us at Line ID : plusitiveaccounting

Article from Prosmes

Compiled by Plusitive Accounting Team