How to choose the appropriate legal structure for your company in Mexico: Companies, SRL, SA, SAS, etc.

May 21, 2024

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Introduction 

Choosing the appropriate legal structure is an important step when forming a company in Mexico. This will affect not only the way you run your business, but also your liabilities, tax treatment and corporate requirements. In this article, we'll look at the most common options in Mexico and how to decide which one is best for you. 

  1. Limited Liability Company (SRL):

    LLCs are a popular option for small businesses in Mexico. Features include:

    • Limited liability of the partners. Minimum capital requirements and at least two partners. One or more administrators provide management flexibility. 

    2. Public Limited Company (SA):

    SA is ideal for large corporations or corporations that want to raise capital through the stock market.

    Her CARACTERISTICS:

    • The liability of shareholders is limited. Minimum capital requirements and at least two shareholders. Management by the Board of Directors and/or designated managers. 

    3. Simplified Joint Stock Company (SAS):

    SAS is a flexible and recent version in Mexican law

    Her CARACTERISTICS:

    • Partners are limited in liability. No minimum capital is required for incorporation. It can be managed by one or more partners.

    Conclusion

    When choosing a legal structure for your business in Mexico, it is important to consider factors such as the size of your business, the nature of your business, and your long-term objectives. Additionally, seeking legal and accounting advice can help you make informed decisions based on your specific needs:

    1. Assess your needs: Think about the size and scale of your business, as well as your future growth plans. Do you need a flexible structure that easily adapts to changes in your business?
    2. Consider liability: What level of liability protection do you need? Are you willing to assume personal responsibility for the company's debts and obligations, or do you prefer a structure that limits your liability to your initial investment?
    3. Consult professionals: Do not hesitate to seek legal and accounting advice. 

    Do you have any questions about forming a company in Mexico or choosing the right legal structure? Send us a message and we will be happy to help you!

    Thank you for reading!

    Additional resources:

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    Written by raul.lobato

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