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Legal entity

Legal entity

A legal entity is an organisation that can have its own rights and obligations, such as a limited company.

What is a legal entity?

A legal entity is an organisation, such as a limited company or an association, that has its own legal rights and obligations separate from its owners. It can own assets, enter contracts and be a party to a dispute.

 

A legal entity as owner

A legal entity can itself be a shareholder in another company, for example a parent company that owns subsidiaries. All owners, whatever their type, are entered in the share ledger.

Learn more about the digital share ledger
Henrik Kristensen, NVR
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Related terms

Natural person

A natural person is an individual human being, as opposed to a legal entity such as a company.

Limited company

A limited company is a business form that is its own legal entity and is owned through shares.

Shareholder

A shareholder is a person or company that owns one or more shares in a limited company.

Parent company

A parent company is a company that owns and controls one or more subsidiaries.