Natural or legal entities regardless of whether they are engaged in entrepreneurial activity or not, they are considered subjects of civil law relations. You in this blog individuals and legal entities we will inform you in more detail.
Who is a natural person?
According to the Civil Code of the Republic of Azerbaijan, a natural person is an individual who participates in legal relations on his own behalf. All citizens, permanent or temporary foreigners and stateless persons are considered natural persons in AR.
The rights and activity capacity of a natural person cannot be limited except in the cases established by law.
If the natural person himself partially or completely renounces the legal capacity or the capacity to act, the agreements aimed at limiting the legal capacity and the capacity to act are of no importance.
How can individuals become sole proprietors?
Individuals can engage in individual entrepreneurial activity without creating a legal entity, i.e. as an individual entrepreneur for the purpose of earning income. So, for this, individuals must first be registered as taxpayers. That is, when they carry out their activities, they must calculate, declare and pay income tax. Registration of entrepreneurial activity begins after opening the TIN. Electronic tax registration of a natural person Internet Tax Administration portal is carried out through "How to open a TIN?You can get detailed information about this in our article.
Registration of a legal entity, as well as an individual who carries out his activities without creating a legal entity, as a taxpayer is regulated by AR tax legislation.
The state registration of persons performing entrepreneurial activity by creating a legal entity is carried out by the relevant executive authority.
Who is a legal entity?
A legal entity is a state-registered entity that owns property and has an independent balance sheet. He can acquire property and non-property rights on his own behalf, assume duties, be a plaintiff or a defendant in court.
Legal entities
- It can be created by a natural or legal person, as well as a group of them
- may be membership based and may or may not depend on the presence of members
- may or may not be engaged in entrepreneurship.
Which entities can be legal entities?
According to the purpose of activity, the following entities can be legal entities:
- Institutions whose main purpose is to make a profit - commercial legal entities
- Organizations whose main purpose is not to make a profit and do not distribute the profit taken are non-commercial legal entities
- Institutions with nationwide and socially important activities - public legal entities
How to create a legal entity?
A legal entity is established by establishing and preparing its charter. If a legal entity is created with the participation of several founders, a contract is concluded between them. The contract specifies the charter, operating procedure, transfer of property of the founders to a legal entity and conditions for participation in its activities.
Note that the charter is considered the founding document of a legal entity. Management of the activity of a legal entity is determined based on that document. At the same time, the name and location of the legal entity, as well as the procedure for its cancellation, are specified in the charter.
A legal entity must be registered with the executive authority. The state registration information, including the company name, is included in the state register of legal entities.
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