6 Frequently Asked Questions about Commercial Companies in Mexico

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Hector Galicia

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To set up a company in Mexico it is important that you know the general information of commercial companies, in this article we answer 6 frequently asked questions about the constitution of Commercial Companies in Mexico.

1.- What are the types of commercial companies in Mexico?

The General Law of Commercial Companies in its article 1 recognizes the following commercial companies:

  • YO.-           Company in collective name;
  • II.-         simple limited partnership;
  • III.-        Limited Liability Company;
  • IV.-        Anonymous society;
  • v.           Company limited by shares;
  • SAW.         cooperative society, and
  • VII.        Simplified stock company (Unipersonal).

2.- How to request the name of your company?

The request for the name or company name is made through the page of the Ministry of Economy called: https://mua.economia.gob.mx/mua-web/muaHome#.

This service is free and the only thing that is required is to have an electronic signature (e signature).

3.- Who can be partners or shareholders?

Any natural or legal person with legal capacity. Notwithstanding the foregoing, there are notaries who request that the persons who are going to establish a company, in their fiscal activities, have the status of Partner or Shareholder.

4.- What are the responsibilities of the partners or shareholders?

  • They are obliged to pay their contributions.
  • Your Responsibility is limited to your contribution to the share capital.
  • Subscribe at least one share or have a share that represents at least $1.00.
  • Vote and be voted in the Assemblies.
  • To receive dividends.

5.- Before whom are companies formalized?

  • Before Notary Public (Public Broker or Notary Public, and in some cases before a Commercial Judge).
  • As an exception, the SAS (Simplified Stock Company) can be incorporated online without the need to go to a notary public.

6.- What are the corporate bylaws?

  • Shareholders/Partners
  • Name, address, nationality of natural or legal persons.
  • Denomination/company name
  • Foreign Admission/Exclusion
  • Immigration: Exclusion or admission with Calvo Clause, Change of Exclusion to admission = notice to SRE
  • Home
  • City and State (it does not require detail of street and number, to avoid modification of statutes each change of physical address)
  • Duration
  • Object. – Lawful, commercial operations
  • Capital. – Minimum and Variable
  • Amount of the Contributions of the Partners/Shareholders.
  • Form of Administration, Unipersonal or Multipersonal.
  • Surveillance Body, Unipersonal or Multipersonal.
  • Reserve Fund (5% Annual until reaching 20%)
  • Distribution of profits and losses.

If you require more information about the constitution of Commercial Companies in Mexico, contact us or write us your opinion.

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Written by Hector Galicia

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