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The concept of a legal entity

Independent participants in business relations are specially created organizations - legal entities. According to the article 57 civil code of China -A legal person is an organization that has the capacity for enjoying civil-law rights and the capacity for performing civil juristic acts, and that independently enjoys civil-law rights and assumes civil-law obligations in accordance with law¹.
Article 39 civil code of the Republic of Uzbekistandictates thata legal entity is an organization that has separate property in ownership, economic management or operational management and is responsible for its obligations with this property, can acquire and exercise property and personal non-property rights on its own behalf, bear obligations, be a plaintiff and a defendant in court. Legal entities must have an independent balance sheet or estimate².
Both of articles above showthat a legal entity must have the characteristics, the totality of which makes it possible to recognize the organization as an independent object of civil legal relations. Such signs include: organizational unity; property isolation; independent property responsibility; acting in civil turnover and when resolving disputes in courts on their own behalf.
Organizational unity is the internal structure of an organization, which is expressed in the presence of its governing bodies, other subdivisions created to fulfill its goals and objectives.
According to article 61 civil code of China the legal person with the responsibility of representing a legal person in conducting civil activities in accordance with law or the legal person’s articles of association is the legal representative of the legal person.
Article 48 civil code of the Republic of Uzbekistan a legal entity acts on the basis of the article of association, or the founding agreement and the charter, or only the founding agreement.
Important point of the legal persons in both states is property and its isolation. Property isolation implies that the property of the organization is isolated (separated) from the property of its founders (participants). Property isolation finds its concrete expression in an independent balance sheet.
Under the property of a legal person should be understood as things in the civil-legal sense - movable and immovable property, money and securities, other property, including property rights; works and services; information; results of intellectual activity, including exclusive rights to them (intellectual property). The property of a legal entity also includes fruits, products and income received as a result of the lawful use of its property³.
A legal person bears the burden of maintaining its property. These duties are associated with the need to bear the costs of maintaining property in proper condition (carrying out current and capital repairs of buildings, structures, etc.), paying taxes provided for by law, making various kinds of fees and payments to state and municipal funds, etc. In turn, the property of the founders (participants) of a legal entity exists in an independent legal regime separately from the property of the organization and is not related to it.
Another essential feature of a legal entity is independent property liability, i.e. an organization that is considered a legal entity is liable for its obligations with property belonging to it. The only exception to this rule is made in relation to institutions whose property liability is limited only by the funds at their disposal.
Those all are shown above illustrates the main concepts of the legal persons in both countries and without them the legal persons cannot exist.

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