• Legal Entities：
• A legal entity is a clearly identified entity, which isgiven rights and responsibilities under commercial law, through registration which the country’s appropriate legal authority. These rights and responsibilities are enforceable through the judicial system.
• A legal entity generally has the right toown property and trade, andthe responsibility to repay debt and comply with labor law.
• Legal entities are responsible to account for themselves to company regulators, taxation authorities, and owners according to rules specified in the relevant legislation.
• The legal entity belongs to the organization’s own corporate legal structure.
• The legal entity is referred to as the internal legal entity and is the initiator and owner of a given transaction.
• Establishment is the generic term used to refer to thebuilding blocksof legal entities.Each legal entity is made up of at least one establishment.These 100 percent owned and controlled entities can also be referred as branches, divisions, establishments (domestic or foreign), inventory organizations, physical locations (for example, manufacturing plants and warehouses). They can be a physical (address) or logical (specific activity)subdivisionof the legal entity.
• In many countries, establishments need to be registered with local regulatory bodies and may have their own activity codes (such as the NACE code in Europe or the SIC code in the U.S.). To fulfill registration requirements in some countries at a local level, a legal entity must register a main establishment. For this reason, the main establishment is created automatically when you create a legal entity.While establishments may or may not be located in the country of the legal entity, the main establishment is always located in the country of the legal entity.It is the main site (location) of a legal entity, which supports specific duties related to coordinating business operations and compliance with legislation and reporting needs for the legal entity.
• Registrations:Company registration is done in accordance with a particular legislation (commercial law, income tax law, civil law, company law, etc., depending on the country). It is the backbone of all other legal obligations a company must fulfill. This registration confers the status of legal entity and therefore, the right to do business in a territory (often a country). To comply with the law in the territory of its operations, a legal entity may be required to register with different legal authorities depending on its activity. However, company registration is the first registration to gain official recognition to qualify for other registrations. In some countries, additional registrations may be required for establishments of the legal entity. Registration information can be used on financial statements and legal reports.
• All legal entities must be registered against a jurisdiction that is governed by a legal authority. A jurisdiction is a combination of the legislative category (labor law, transaction tax law, income tax laws, Insurance law, Securities law, Ground Transportation law etc.) and the physical territory (group of countries, country, state, county, and parish) to which legal rules are grounded. A tax jurisdiction is a geographic area where a tax is levied by a specific tax authority, for example, the tax jurisdiction for Goods and Services tax in Singapore is the country of Singapore.
• You need to set up jurisdictions before creating registrations because a jurisdiction is required when creating a registration.For some countries, at least one jurisdiction is seeded: the identifying jurisdiction. Users will have the ability to create additional jurisdictions for other registrations.
• The identifying jurisdiction is usually the first jurisdiction that the legal entity must register with, in order to be recognized in its territory. Because registrations to this jurisdiction may not be used in Oracle Applications, the identifying jurisdiction may be another jurisdiction that is commonly used within a country.
• The registration to the identifying jurisdiction of the legal entity territory is called the identifying registration.
• The jurisdiction can also capture the registration code or the name of the registration number.The registration code can then be used as the prompt for the registration number given the context of the jurisdiction. The jurisdiction will also have a start date and end date to show when the jurisdiction is effective and when you can register against the jurisdiction.
• When a legal entity or establishment registers with a jurisdiction, there may be a set of functions that it needs to perform, such as payment or income tax declaration. Legal functions can be pre-defined in the jurisdiction to facilitate the registration process. When a registration is created, the specific functions of the jurisdiction can be assigned to the legal entity or establishment. Legal functions that are defined as required on the jurisdiction are by default assigned to the legal entity or establishment during registration.
• Legal Authorities:
• A legal authority is a governing legal body that operates within a jurisdiction. The legal authority is responsible for enforcing legislation, collecting fees and taxes, and making financial appropriations within a given physical area for a type of law. For example, the Internal Revenue Service is the legal authority for income tax law in the US.
• When a legal entity registers under a given jurisdiction, it may be related to a legal authority that is governing in that jurisdiction. Legal authority information is used on legal reports and financial statements in some countries and is determined by the legislation of the jurisdiction. Defining a legal authority is not required for a legal entity to transact and therefore, is not required to create a registration.
• A legal authority is associated with a jurisdiction because it has authority over the legal entities that are registered with the jurisdiction. The relationship between the legal authority and the jurisdiction is formed when you create a legal entity registration. Each registration is made to a jurisdiction and each registration can identify an issuing legal authority.
• In some countries, the legal authority has executive responsibility over several legislative categories. All of these legislative categories can be assigned to the legal authority. Legal authorities are defined according to your company's preferences. For example, you can create one authority per office or one authority for multiple offices.
• Legal Associations
• Legal Associations is a set of components that aims to provide a centralized repository and a common mechanism for maintaining associations between business entities (non-legal constructs) and legal constructs (legal entities, establishments) and between just legal constructs. You can also use Legal Associations to maintain associations between balancing segment values and establishments for some countries.
• When dealing with associations with establishments, these components are integrated into the Establishment Details page so that you can create associations between various attributes (such as Operating Unit/ Inventory Organization /Inventory Location / Ship-to and Bill-to Location) to establishments. These associations are mainly used by e-Business Tax as a component for tax calculations.
• Associations are based on seeded cardinality rules, so it is possible to associate the same operating unit, inventory organization, and location to different establishments, even if they belong to different legal entities.
• E-Business Tax needs the establishment information to determine what the imposed tax will be based on information present at the time of entry/creation of the transaction. Determining the establishment is necessary as it is the connecting entity that would determine tax registration and the other relevant details to determine tax.
• Legal Address:The address a legal entity uses to register with a legal authority. A legal entity may use different addresses for different authorities and hence, may have more than one registered address. This legal address must be located within the territory entered.
• Legislative Category:立法范畴
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