A natural person is a human being with inherent rights and responsibilities. Their legal status is a result of their existence as individuals.
An artificial person is a legal creation, often in the form of a corporation or organization, established by law to have a distinct legal personality separate from its members.
Formation:
Natural Person: A natural person comes into existence by birth and is recognized as an individual with legal rights from that point onward.
Artificial Person: An artificial person is formed through a legal process, typically by registration and compliance with statutory requirements, and gains legal recognition as a separate entity.
Legal Rights and Responsibilities:
Natural Person: Natural persons enjoy a broad range of legal rights and bear individual legal responsibilities. They can own property, enter into contracts, and have personal rights protected by law.
Artificial Person: An artificial person possesses legal rights and responsibilities similar to those of a natural person, including the ability to own property, enter contracts, and sue or be sued. However, these rights are exercised on behalf of the entity, not its individual members.
Lifespan:
Natural Person: The legal status of a natural person is tied to their lifespan. It begins at birth and ends at death.
Artificial Person: An artificial person can have a perpetual existence, continuing its legal existence beyond changes in membership or ownership.
Capacity and Expertise:
Natural Person: Legal capacities of a natural person may vary, and they are personally responsible for their actions. Their abilities are influenced by individual skills, knowledge, and experience.
Artificial Person: The capacity of an artificial person is defined by its governing documents and the law. It can act through its agents and benefit from collective skills, knowledge, and expertise.
Citizenship:
Natural Person: Natural persons may be citizens of a particular country, subject to the laws and regulations of that jurisdiction.
Artificial Person: An artificial person may be incorporated or registered in a specific jurisdiction, and its legal status is determined by the laws of that jurisdiction.