The word entity has different meanings depending on the context in which it is highlighted. In the legal field, this word is used to refer to a corporation or a company that will be considered as a legal entity. The word entity can also be used to refer to the territorial divisions of which a State or country is composed. While in philosophy, this word is used to refer to everything that constitutes the essence of a being.

What is an entity

Coming from the medieval Latin entitas, the word entity is used to refer to everything that can be considered as a unit. In this sense, everything that, being concrete or abstract, exists and is therefore different from the rest can be considered as an entity. This is why this term can be used in a person, an animal, a company and, in some cases, it can be used to refer to a community that can be considered as a unit.

Uses of the word entity

Used mainly to refer to everything that represents a unit, there are several uses of the word entity that depend exclusively on the area in which it is applied.

For example, in the political sphere, this word is used to name the political or regional divisions that make up the territory of a State or country, in this case we speak of a sub-national entity. Likewise, within this scope, the social entity can be mentioned, a term that can be used to refer to an organization or institution.

On the other hand, within the political and social sphere, you can also find the Zionist or Zionist regime, which is the term used in Arab countries or those belonging to the Muslim world to refer to the State of Israel.

However, the use of the word Zionist entity is used in a hostile tone towards Israel, as a way of rejecting its existence, or with the intention of denying its right to exist, which is why the use of this phrase has been described as contemptuous and a clear reflection of racial hatred.

When it comes to philosophy, this word is used to refer to everything that somehow exists, regardless of whether it is referring to a person, animal, thing or even an organization.

Likewise, for some philosophers the entity is the spirit or the being that exists outside of physical reality, thus giving them the name of non-physical. This, however, has generated much debate in the world of philosophy, as it is an abstract concept that tries to recognize the existence of something that cannot be seen, smelled or touched, but which, according to many philosophers, exists and therefore exists. both can be considered an entity.

What is a federative entity


It is a unit that is territorially delimited and that, together with other federative entities, forms a State or nation. For example, in Mexico there are 32 federative entities, these are normally known as states and they are the ones that make up the Mexican republic.

These have the particularity that they can participate in all government activities carried out by the federal systems of the nation and, due to their high level of autonomy, they can act unilaterally in the processes authorized by the Constitution of their State, even having the power to participate. in decisive questions and may be in opposition to rational policies, since the federative entities have an effectively irrevocable power in making these decisions.

What is an economic entity

This can be understood as any identifiable unit that is qualified to carry out economic activities, that is to say that the term economic entity is granted solely and exclusively to companies, organizations, institutions or work groups that are dedicated to the realization of economic activities.

These, in turn, must be constituted by the combination and work in groups of the financial resources of the unit, material resources and human resources, these conducted and duly administered by an effective and unique control center, which will have the Obligation or the task of making each and every one of the decisions, as long as they are aimed at fulfilling the specific reasons or objectives for which the unit has been created.

It is important to mention that the personality of the economic entity is completely independent from that of the owners, shareholders or sponsors of the company.

Types of economic entities

Depending on the purpose for which it has been created, there are two types of economic entities:

Profit-making entity

A lucrative economic entity is one that is characterized by carrying out economic activities conducted and administered by an authority that is in charge of making decisions in order to compensate and reward each and every one of its investors for the expense they have made, this to through a good performance of the unit that generates enough profit to achieve a refund of the money to the owners.

Non-profit or non-profit entity

It can be said that an economic entity has non-profit or non-profit purposes, when it makes use of its material resources in combination with its human resources to achieve the objectives for which it has been created and, these in turn, are directed Mainly for social causes and that do not have as a purpose the reimbursement, to its investors or sponsors, of the investment used as capital.

Characteristics of the non-profit or non-profit entity

  • Its activities of sale of goods, production or provision of service have the sole purpose of fulfilling a social benefit.
  • The sponsors or investors do not receive any type of profit or economic benefit for the services it provides.
  • It is not necessary, or the participation of the owner in the activities of the company is not defined.

It is important to mention that, although a natural person can be treated as an economic entity, it cannot be confused with a legal person, since the latter has a treatment, in the legal field, different from that enjoyed by economic entities, both lucrative as a non-profit.

Other entity examples


Even when the most common uses of the word have been explained, there are other examples of entity that are worth mentioning, because, although their use is not very common, they exist within the definition of said term.

Entity of birth

Although it is better known as a birth certificate, it is the document in which the main data about a person’s birth are exposed and presented, that is, the person’s name, place of birth, date of birth, relevant data of the parents and place in which it has been presented.

In general, this document is drawn up and prepared in a department belonging to the public administration of the nation, which in most countries is known as the Civil Registry.

As this is the first identity document of a person, it is common for parents to apply for it, only a few days after the birth of their son or daughter, since in this way, the infant is registered in the country’s system and is considered one more citizen of the nation.

Accounting entity

Within the economic sphere, an accounting or accounting entity is the entity in charge of controlling the resources of a unit, as well as accepting the necessary responsibilities and complying with the commitments that are needed to carry out the economic activity.

Within this accounting system, the accounting entity is of great importance since it is the accounting entity who defines and decides what is necessary and what may become relevant for each of the actors that fulfill their role and function within the accounting environment.

Database entity

The database entity, as its name describes it, is the entity in charge of representing an object or a concept of physical space and describing it in a database, that is, through the use of tables, concept maps or models of hierarchy (all with their information backed up in a database), the database entity has the objective of keeping track of a specific real-world environment.

For example, most schools make use of the database entity to keep track of their students, taking into account the level of study of each one, the classes they attend daily, the grade point average they take. so far and even data as basic as your name and surname.

Frequently Asked Questions about Entity

What are entities?

They are companies made up of two or more people who come together to start a company or company that they represent as a legal entity, they also refer to the divisions of the territories belonging to a state and highlight the value or importance of something that is relevant.

What is a birth entity?

It is known as an act in which the most important data about a person’s birth are highlighted. In this, the names, surnames, place, date and time in which the individual was born are indicated, and in addition to that, some data of the representatives of the newborn are placed. Said document is drawn up in a department attached to the state administration.

What are the entities of a company?

A business entity is known as the unit that is dedicated to carrying out economic activities and is made up of human, material and financial resources. In this, the suppliers and customers of a company or company stand out, because they are in charge of selling and buying the items they have in stock.

What are the types of entities?

According to their purpose, there are the lucrative and non-lucrative, judging by the people who constitute it, they can be physical and moral, according to the entity, the public, private and mixed are located, according to their capital, they are the national, foreign and transnational ones, and in correspondence to the activity they develop, the commercial, industrial, services and specific activities are located.

How many entities does Mexico have?

Mexico is characterized by being a country that is organized as a representative, democratic and federal republic. This is divided into 32 federative entities and 31 are considered to be free states in their internal regime and one is the Federal District where the federal powers live. The most populated entities are Mexico City, Veracruz, Jalisco and the state of Mexico.