What is legal entity in Türkiye?
What is legal entity in Türkiye?
One of the new concepts we hear frequently in today's world is the concept of a legal entity. This ubiquitous term might initially confuse you. You're in the right place to learn what this frequently encountered concept means.
What is a Legal Entity?
They are legal entities established by natural persons to achieve a specific objective. A legal entity is legally considered a natural person, but it is an organization without physical existence. In short, a legal entity is the personality created by organizations established by natural persons. Legal entities are legal entities established to achieve a specific objective, possessing rights and obligations and capable of incurring debt. Legal entities can own property and engage in legal transactions like natural persons.
Who is a Legal Entity?
Legal entities are examined under two different headings, depending on their establishment objectives and legal statutes:
Public Law Legal Entities
Public legal entities are organizations established by the state or public authorities that operate for the public benefit. These types of legal entities operate to meet social needs and provide public services. Examples of public legal entities include:
- Ministries
- TUBITAK
- Municipalities
- Universities
- Public economic enterprises
Private Law Legal Entities
These are organizations established by individuals for specific purposes but subject to the validity of private law. This class of legal entity offers a broad perspective. Examples include:
- Associations
- Cooperatives
- Political parties
- Commercial companies
- Foundations
- Civil society organizations
Asked Questions About Legal Entities
What are the differences between a natural person and a legal entity?
A natural person is an individual whose existence begins with birth and ends with death. A legal entity, on the other hand, begins with an organization possessing legal personality and ends with a liquidation decision. In short, a legal entity is an organization formed by individuals who come together for a specific purpose.
Who is Granted the Legal Entity Title?
Individuals and organizations currently holding legal personality status can establish new legal entities as long as they meet the legal requirements. Turkish citizenship is not required to establish legal entities. Foreigners can also establish legal entities as long as they meet certain requirements.
Limited Companies Legal Entities?
Yes, limited companies have legal personality. They have legal obligations. The liabilities of partners in legal limited companies are limited proportionally to their capital contributions. Partners are liable to the extent of their shares.
Are Sole Proprietorships Legal Entities?
No, sole proprietorships do not have legal personality. They have a natural personhood. A sole proprietorship consists of the name and surname of the individual trader.
Are Joint Stock Companies Legal Entities?
Yes, joint-stock companies are legal entities. They have a neutral legal identity separate from their partners. They can own property, incur debt, and carry out all legally required transactions.
Are Ordinary Companies Legal Entities?
No, ordinary partnerships are not legal entities. Therefore, the partners share joint ownership and liability in their assets. Ordinary partnerships are organizations established by multiple individuals through a simple partnership agreement. Ordinary partnerships do not acquire legal personality.
Can E-commerce Companies Be Legal Entities?
Yes , e-commerce companies can acquire legal entity status. Online businesses, whether established as limited liability companies or joint-stock companies, are legal entities. Establishing e-commerce companies in this manner is crucial for both providing quality service to customers and ensuring trust and complying with applicable laws.
If you would like to establish a legal entity or a natural person, specific to your specific activities, please contact us.
