Today we will explain what a natural and legal person is according to the Colombian Civil Code. In this article you will learn their definitions and the main characteristics that identify them, so that you can clearly understand each concept.
Understanding the difference between a natural person and a legal entity is key in the Colombian legal field, since these concepts have a significant impact on aspects such as rights, obligations and responsibilities.
So here you will find everything you need to know about its key features and how they affect business management and legal relationships.
What is a natural or legal person in Colombia?
A natural person refers to any individual who may number library have legal rights and responsibilities. For example, when you, as an entrepreneur, register a business in your name, you are acting as a natural person .
A legal person , on the other hand, is an entity created by several people, such as a company or a foundation, which has its own legal identity. Imagine that you decide to create a business selling clothes online.
By registering a company, it becomes a legal entity , allowing it to enter into contracts, acquire debts or assets, and assume responsibilities independently, separate from your personal commitments as an individual.
Entrepreneurs looking for information on what constitutes a natural or legal person in Colombia.
What is a natural person?
A natural person is an individual who has the ability to work as a freelancer or independently. If you are an entrepreneur and you operate as a natural person , it means that you and your business are legally the same entity.
This also means that any financial liability falls directly on your personal resources. In other words, if your business faces financial problems, you will be responsible for covering the debts with your own money or property.
Article 74 of the Colombian Civil Code defines a natural person as “all individuals of the human species, regardless of their age, sex, lineage or condition.” This underlines that any person can be considered a natural person, with all the responsibilities and rights that this entails.
What is a legal entity?
Unlike a natural person , a legal person is an independent legal entity, created to carry out economic or social activities through its representatives. This entity can exercise rights and assume obligations towards third parties, acting autonomously.
According to Article 633 of the Colombian Civil Code:
A legal person is a fictitious person capable of exercising rights and contracting civil obligations, and of being represented judicially and extrajudicially. Legal persons are of two types: corporations and public charity foundations.
For example, if you decide to set up a company, it becomes a legal entity. Therefore, any legal or financial liability will fall on the assets of the company, not on you as an individual.
In other words, the company has its own legal identity separate from yours, protecting your personal assets in case debts or legal liabilities arise.