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This article explains how to map your complete corporate legal structure in Personio by recording all legal entities (previously called subcompanies) and their respective employees. Every Personio account has at least one legal entity, which is your parent company. In case you have legal entities that are not recorded in Personio, you will need to create additional legal entities in your Personio account to represent your legal structure.
If you are using Personio Payroll, the correct setup of your company structure and the corresponding information is essential. You can find more information for this specific case in the article Set up your company structure for Personio Payroll.
Enable legal entities
Before you can configure legal entities, you need to enable the functionality in your Company Settings. To do so, follow these steps:
- Go to Settings > Organization > Company.
- Next to Company information, click Edit.
- Then activate the checkbox Legal entities functions enabled, and click Submit. This will activate the Legal Entities section in your Settings.
Set up legal entities
To set up a legal entity, you need to create it, provide legal details and add employees.
- Navigate to Settings > Organization > Legal Entities.
- Then click Add new.
- Fill in the legal name and the relevant information.
Tip: If you have trouble saving your information, take a look at Validation rules for legal entity attributes.
- Then click Add.
- Now you can assign employees through the employee list or the employee profile.
Set up main legal entity
In case you have more than one legal entity, you need to select which one is your main legal entity. The main legal entity is the parent company to all other legal entities, if available. In case you only have one legal entity, this one will automatically be the main one.
To select which of your legal entities is the main one, click on the legal entity on the left, and select Set as main in the top-right corner.
Assign employees to a legal entity
To assign employees to a legal entity, you can navigate to the employee list and assign the legal entity there. Alternatively, you need to add the attribute Legal Entity as an additional column in the Excel template for the Employee Import. Then enter the respective name of the legal entity in this column. Please note that only existing legal entities can be assigned through the import. Learn more in our article Import employee data (Implementation).
Once employees have been assigned to a legal entity, you can see next to the legal entity's name the number of active employees who are registered in Personio for this legal entity.
To delete a legal entity, you need to ensure that it does not contain any active or inactive employees. Then click on the bin .
Data associated to legal entities can be managed in various sections of Personio:
|For employees of the legal entity, the legal entity is shown as a system attribute in the public profile section of the employee profile. This way, you can assign employees to legal entities.
|You can display the column Legal entity in the Employee list, and can filter views by legal entity, or assign employees in bulk to a specific legal entity.
You can create separate payroll exports for each legal entity. Legal entities are automatically separated in preparatory payroll processes. Learn more about Managing Preliminary Payroll.
You can set up the DATEV integration for different legal entities.
Click on the Orgchart view to display legal entities and their employees in a clearly structured organizational chart.
Generate separate reports by creating groups or adding filters for specific legal entities.
|Filter by attribute
You can select the attribute Legal entity for any filter available in Personio. For example, to assign access rights only to a particular legal entity. Employees with access rights to a specific legal entity can then only access employee data for that legal entity. Learn more on access rights in Set up employee roles and access rights (Implementation).
You can create a separate career page for each legal entity and assign jobs to specific legal entities. Learn more about Best practice: Legal entity branding in recruiting.