A Legal Entity is an Organization recognized under the laws of an applicable jurisdiction as having legal rights, obligations, and capacity.
Legal Entity is more specific than Organization. Every Legal Entity is an Organization, but not every Organization is a Legal Entity. An informal association, department, branch or other Organizational Unit may form part of an Organization without possessing separate legal identity.
Legal Entity also remains distinct from Person. A Person may possess legal rights, obligations, and capacity as a natural person. This terminology uses Legal Entity for a legally recognized Organization rather than for an individual human being.
The laws of an applicable jurisdiction determine whether an Organization qualifies as a Legal Entity, its legal form, the rights and obligations it may hold and the period during which its recognition applies.
A Legal Entity Identifier identifies an eligible Legal Entity within the applicable identifier scheme. Assignment of an identifier records identity within that scheme. It does not create or confer legal status on its own.
Organization recognized under the laws of a jurisdiction as having legal rights, obligations and capacity
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Aligned with:
The permanent source citations should reference the applicable public Annex D entries after those reference entries receive identifiers.
Example Bank Corporation is incorporated under the laws of Jurisdiction A. Applicable law recognizes the corporation as capable of entering contracts, owning property, incurring liabilities, and bringing or defending legal proceedings.
Example Bank Corporation is a Legal Entity.
Example Bank Corporation's FX Trading Department is an Organizational Unit. The department is not a separate Legal Entity unless applicable law independently recognizes it as one.
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