1. Definition

A legal entity is a legal construct that, like a natural person, can exercise rights and obligations. Legal entities are established through statutory regulations and can, for example, enter into contracts, own property, or initiate legal proceedings. Unlike natural persons, legal entities do not physically exist but are recognized solely in legal terms. Examples include corporations, associations, and foundations.

2. Applications

The scope of legal entities is extensive:

• Economy: Businesses such as limited liability companies (LLCs) or joint-stock companies (JSCs) act as legal entities to carry out economic activities.
• Non-Profit Activities: Organizations like associations, foundations, and non-profit entities use the status of a legal entity to pursue their goals independently of their members.
• Public Administration: Government bodies and municipal organizations, such as cities or state institutions, are considered public legal entities.
• Legal Protection: The status of a legal entity allows liability to be limited to the entity’s assets, protecting individuals from financial risks.

3. Types of Legal Entities

Legal entities can be categorized as follows:

1. Private Law Legal Entities:

   • Corporations: These include LLCs, JSCs, and limited partnerships (LPs). They primarily serve economic purposes.
   • Associations: Registered associations (e. V.) often pursue cultural, sports, or charitable objectives.
   • Foundations: These are institutions equipped with a specific purpose and dedicated assets.

2. Public Law Legal Entities:

   • Corporations: Examples include municipalities, universities, or professional associations.
   • Public Law Institutions: These include public broadcasting organizations or savings banks.
   • Public Law Foundations: These are created for public purposes, such as education or research.

Legal entities are vital for structured and legally secured operations in business, society, and administration.