Advertisements
Individuals and legal entities are a subject that always raises some questions, especially regarding the differences.
This is because we constantly hear the terms physical and legal, but what does that mean?
If you have this doubt, then today we can solve this problem, through the following content.
That said, to learn everything about the subject, seeing concepts, differences, advantages of being a legal entity and much more, continue reading!
What is a natural person?
We know that you probably came across this material because you have always had doubts about the terms natural person and legal entity.
So, you believe that the day has finally come to get rid of this doubt, and we are here to help you with that!
Therefore, we will start by explaining what a natural person is, which, surprisingly enough, is something extremely simple.
The term natural person is used to describe a human being as an individual, from the moment he or she is born until his or her death is declared.
This means that as soon as you are born and your birth certificate is issued, you are considered a natural person.
Thus, it is clear that, contrary to popular belief, the term natural person has no relation to the issuance of the CPF (Individual Taxpayer Registry).
This is because, although the name of the record refers to the term, in theory the individual does not become considered a natural person only after its issuance, as this occurs from the moment the birth is registered through the certificate.
So, to wrap up the matter, it is clear that a natural person is the term used to describe a person as an individual.
What is a legal entity and what is the difference between it and a natural person?
Once we understand what a natural person is, we can move on to explaining what a legal person is.
The term legal entity is widely used in the corporate world, so many people associate it with the word company, but is this correct?
In fact, associating the term with the company is correct, since in the same way that a natural person identifies a human being as an individual, the legal term identifies an entity, formed by one or more natural persons.
When we talk about entities, we are referring to companies, societies, organizations and many other examples.
Thus, it is clear that a company, society, organization or something of the sort represented by one or more individuals is defined as a legal entity.
What differentiates a natural person from a legal entity is that, while a natural person is identified by the CPF, a legal entity is identified by the CNPJ.
However, unlike what happens with individuals, legal entities need a CNPJ to receive this nomenclature.
This is because the business needs to have some type of registration, and this starts with opening a CNPJ.
So, it is clear that in a simplified way, the term physical applies to people, and the legal term applies to companies.
Is MEI an individual or a legal entity?
At this point you certainly understand what an individual and legal entity are and the differences between the terms.
Therefore, it is common for a doubt to arise about MEI, after all, is MEI an individual or a legal entity?
This doubt arises because MEI is a modality that aims to formalize self-employed professionals.
And if it is self-employed, it would be physical, correct?
Not really, since when opening the MEI a CNPJ is issued, therefore, a company is registered.
In this way, the identification of the MEI is through a legal entity, therefore, it responds as a legal entity, and not an individual.
It is a fact that the MEI company is linked to the CPF, and the micro-entrepreneur cannot even have another company in his name.
But, even so, the fact that there is this connection with the CPF does not change the classification of a legal entity.
This means that if the MEI responds to a lawsuit, opens a business account or issues an invoice, these procedures will occur as a legal entity.
Why become a legal entity?
After everything we’ve explained, you’re already an expert on the subject of individuals and legal entities.
This way, that doubt that always popped into your head when someone mentioned the terms no longer exists.
Furthermore, you even know the difference between the two, and under which term the MEI is classified.
So, we can finally talk about the reasons for becoming a legal entity.
This is because, in Brazil, it is very common for people to avoid opening a company, for fear of taxes.
Especially for those who work as freelancers, not everyone sees the need to open a MEI, let alone a larger company.
But, it is worth mentioning that opening a CNPJ can help you with several issues.
We will see what they are right now, in order to convince you to formalize your situation!
Issuance of invoice
Issuing an invoice is one of the most important points for anyone who has a company.
And, it is a fact that this can only be done by companies, including MEI.
Therefore, when you choose not to formalize your professional activity, you end up not being able to issue the invoice.
The big problem is that the note is not used for simple checking, it is important for the following points:
- Collection and payment of taxes;
- Declaration to the Federal Revenue Service;
- Offer of warranty to the customer;
- Protection in case of legal proceedings;
- Between others.
Therefore, if you want to move away from informality and be able to issue invoices to your customers, it is worth becoming a legal entity.
This is because, as an individual, it is not so simple to provide this very important document.
Professionalize your work
It is a fact that we live in a country where unregistered self-employment is still considered a side job.
Therefore, until you become a legal entity, you will still be seen by some as someone who works informally.
This can hinder you from achieving opportunities, as well as slowing down your growth.
Therefore, invest in opening a company, as this will help you professionalize your business.
This way, customers will see your services in a different light and will have more confidence in doing business with you.
Remember that there are things that are not legally reliable to do with an individual, and these are the customers you could be losing!
Get access to special credit lines
And finally, the last advantage of opening a CNPJ is opening the doors to the banks' business area.
It is a fact that there is a big difference between credit lines and products offered to individuals and legal entities.
In this way, many people who cannot get a credit card, when opening a company, can get one easily through CNPJ.
The same goes for loans, which may be easier to obtain by presenting the company's annual earnings.
Therefore, if you are looking for financial growth, opening a company can help you.
So, after knowing everything about individuals and legal entities, all you need to do is decide whether you want to continue as an individual, or whether it is also worth being seen as an entity!
Take advantage and also read 👉 How to get a loan for MEI? Get your questions answered!
