Company Will Be Regarded As An Autonomous Legal Person


The incorporated company is a business entity recognized as an autonomous legal person as per the law that exists independently with the rights and risks. It means that the company is treated as a separate individual from its members. A company should be managed by at least one director and owned by at least one shareholder. This distinct legal personality has the outcome that the organization has interminable progression. The company’s life is not impacted by the disability, death, disagreement or insolvency of shareholders. The company’s existence is over when it is ended up under the Companies Acts.

The shareholder’s liability is restricted to the value of their share. It implies that the shareholder’s properties will not be sold for business obligation repayment if the company fails to pay its debts. Writing a law paper on an autonomous legal person is very difficult and challenging; it requires a deep understanding of companies’ Acts and related laws sections and case studies. The Law dissertation writing service UK provides great help regarding any topic about the law. This article will help you understand the company and its role as a legal personality.

What is a legal personality?

A legal personality is a term used for any organization or company with legal responsibilities and rights, including debts and tax charges. It is a business that can sign any contract either as a supplier or vendor or sue or be sued in a court of law. An autonomous legal person is structured to permit a superior level of security for private resources from penalties and lawsuits. Each type of legal personality gets various sets of protection and tax burden.

A legal person can sign a contract, file a suit or be named by other parties in the suit, borrow and pay the debts or can hold responsible for various penalties. Every legal personality is issued an identifier; it is a 20 character code which acts as a reference to interface that company with monetary information. However, these identifiers are still not fully standardized.

What are the different types of legal personality? 

An autonomous legal person can be structured in various ways, including S and C corporations, nonprofits, LLCs, sole proprietorships, trusts, etc. Around 15 kinds of business legal personalities in the United States require different legal personality documents. Notwithstanding, the most widely recognized legal structures are.

  • C corporation 

C corporation is the most commonly used legal structure in the US. Founding a C corporation provides liability insurance which means that shareholder assets are not at the risk when company fail to pay its debts. However, the drawback of a C corporation, an autonomous legal person, is that it increases tax rates and elevates administration complexity.

  • Sole proprietorship

A sole proprietorship is a type of organization in which the company owner takes all risks and make all decision for the company, making the business incorporated. The company is not separate from the business owner in a sole proprietorship.

  • Partnership

The partnership is the legal business structure in which company owners share the profit, liabilities and all the company’s responsibilities with their partner. This type of legal structure strengthens the organization through the partnership agreement, clarifying the partners’ working relationship and profit distribution.

  • Limited liability company

LLC is an autonomous legal person that is a hybrid between a corporation and a general partnership. As the name suggests, LLC offers limited liability assurance to the company without the double taxation penalty. However, the company owner is liable for the business debts, only for the amount he invested in the company.

These are the legal business structure practice in the US. However, these legal structures are not the same in other parts of the world.

How does legal personality differ in other countries?

The meaning of legal personality varies widely depending on your location. It is always common that it is a company or organization with its own legal rights and responsibilities, making it an autonomous legal person. Following is the list of legal personalities around the world.

  • In the UK, to be an incorporated business, you can pick an LLP( limited liability partnership), limited company ( restricted by shares), a CIO( charitable incorporated organization), a CIC ( community interest company), an industrial and provident society or a monetary mutual.
  • In Dubai, companies are registered through a category, partnership, company, free zone company or branch office. This method is different from other emirates. A company can also be incorporated as a civil company, LLC, public and private shareholder company, or joint venture company. However, it is an extreme simplification of the process.
  • In Australia, the most common autonomous legal person structures are a company, a sole trader (incorporated), a trust and a partnership.
  • In South Africa, a method to carry out business is divided into public(Ltd) and private companies, which are further divided into a business trust, a personal liability company(Inc.), a sole proprietorship, a partnership, and an external company ( branch of foreign business).
  • In the Netherlands, business is generally done as a sole trader or a private company with limited liability, professional or limited partnership.

As you can comprehend that the meaning of legal personality does not change globally, but a legal personality and its types look different and have different governance and compliance implications.

The consequences of doing business without forming an autonomous legal person

In the US, you can be a sole proprietorship, and in Australia or the UK, you can be a sole trader and carry out business without creating a legal entity. The essential difference lies around the liability. There is no line between your company’s funds and your personal ones without a legal personality. It implies that if your company is buried in debt or being sued, you will be directly responsible, and your personal resources can be seized to pay the debts or you will be personally sued and face the lawsuit.

If you are a law student searching for a paper on an autonomous legal person, take help from Law dissertation writing service and get a perfectly written paper at low prices.


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