Physical person

What is a natural person?

A natural person or natural person is a term used to refer to any individual or real person who has Rights Y obligations with society, just for the simple fact of existing.

Natural persons are capable of assuming obligations when they fulfill their coming of age and are identified by their Name Y surname. They also have other attributes to identify themselves, such as nationality, civil status Y heritage.

Characteristics of a natural person

A natural person has the following characteristics:

• Can assume debts or loans. Before the law, you have the power to assume a debt as long as the creditor is willing to lend you. It will pay interest according to the risk it represents for the lender.
• Declares taxesYou must file a declaration of your income with the State and pay taxes when it corresponds.
• The State must recognize its Rights, such as voting, those related to health, social security and human rights.
• You can get involved in economic activities providing professional services, for example, in exchange for compensation (salary or salary).

These are general characteristics of natural persons, however, they may vary according to nationality or if they have more than one nationality, in which case there may be more obligations and / or rights.

Differences with a legal entity

A natural person differs from a legal person in the following aspects:

• A natural person is personally responsible of the debts that a company has, while in the case of a legal person, its debts are limited to the assets of the company.
• A natural person is made up of only one person, while a legal person is constituted by at least one person.
• The natural person can act as personal company, while legal persons can have different forms: limited liability company, public limited company, collective partnership, among others.
• The natural person has greater facility to establish a company in their name (personal company), while the legal person requires a more complex process for its constitution.
• The natural person usually has less access to credit and handle a number of minor capital with respect to legal persons.

Examples of natural person

Here are some examples of natural persons:

• People who provide a professional service in exchange for remuneration. These are salaried.
• People who provide a professional service independently. These receive fees.
• People linked to commercial activities (sale of goods or services).
• People who make sales through social networks.