{"id":4015,"date":"2024-12-07T13:47:58","date_gmt":"2024-12-07T19:47:58","guid":{"rendered":"https:\/\/q1dapyf5zv.onrocket.site\/?p=4015"},"modified":"2024-12-07T13:49:31","modified_gmt":"2024-12-07T19:49:31","slug":"tipos-de-sociedades-mercantiles-en-mexico","status":"publish","type":"post","link":"https:\/\/taxid.mx\/english\/tipos-de-sociedades-mercantiles-en-mexico\/","title":{"rendered":"Types of Business Companies in Mexico"},"content":{"rendered":"<p>Article 1 of the <strong>General Law on Commercial Companies (LGSM)<\/strong> establishes the seven types of commercial companies recognized in Mexico, which are the following:<\/p>\n\n\n\n<ol start=\"1\" class=\"wp-block-list\">\n<li><strong>General Partnership<\/strong>: It operates with the joint and unlimited liability of the partners for the social obligations. The partners act under a corporate name.<\/li>\n\n\n\n<li><strong>Simple Limited Partnership<\/strong>: Includes general partners (with unlimited liability) and limited partners (with liability limited to the amount of their contributions).<\/li>\n\n\n\n<li><strong>Limited Liability Company (S. de RL)<\/strong>: Its partners limit their liability to the amount of their contributions. It is ideal for small and medium-sized companies with a limited number of partners.<\/li>\n\n\n\n<li><strong>Public Limited Company (SA)<\/strong>: It is formed with a capital divided into shares. Shareholders have limited liability to the value of their shares.<\/li>\n\n\n\n<li><strong>Limited Partnership by Shares (S. en C. por A.)<\/strong>: It combines characteristics of a simple partnership and a public limited company, with general partners (unlimited liability) and limited partners (liability limited to their shares).<\/li>\n\n\n\n<li><strong>Cooperative Society<\/strong>: It is based on principles of mutual aid and solidarity. Its main purpose is to satisfy the common economic and social needs of its members.<\/li>\n\n\n\n<li><strong>Simplified Joint Stock Company (SAS)<\/strong>: Introduced in 2016, it is a sole proprietorship that simplifies the incorporation requirements, ideal for small entrepreneurs.<\/li>\n<\/ol>\n\n\n\n<h3 class=\"wp-block-heading\">Variable Capital Company<\/h3>\n\n\n\n<p>Any of the companies mentioned (except the cooperative) can be established as <strong>variable capital company<\/strong>, which allows its share capital to increase or decrease without the need for a statutory reform, under the provisions of the <strong>Chapter VIII of the LGSM<\/strong>.<\/p>\n\n\n\n<p>This framework allows flexibility in the formation of companies according to the specific needs of the partners and the business.<\/p>\n\n\n\n<p><strong>The most popular business corporations in Mexico<\/strong><\/p>\n\n\n\n<p>In Mexico, the most popular companies for establishing businesses are: <strong>Limited Liability Company (S. de RL)<\/strong>, the <strong>Public Limited Company (SA)<\/strong>, and the <strong>Simplified Joint Stock Company (SAS)<\/strong>. Each has advantages that suit different types of businesses and needs. Below is a comparison table of these companies:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Type of Company<\/strong><\/td><td><strong>Characteristics<\/strong><\/td><td><strong>Advantages<\/strong><\/td><td><strong>Disadvantages<\/strong><\/td><\/tr><tr><td rowspan=\"3\"><strong>Public Limited Company (SA)<\/strong><\/td><td>\u2013 Capital divided into shares.<\/td><td>\u2013 Ideal for medium and large companies.<\/td><td>\u2013 More costly and bureaucratic incorporation process.<\/td><\/tr><tr><td>\u2013 Minimum of 2 partners.<\/td><td>\u2013 Flexibility in the entry and exit of partners.<\/td><td>\u2013 Requires formality in administration.<\/td><\/tr><tr><td>\u2013 Requires a articles of incorporation before a notary public.<\/td><td>\u2013 Allows issuing shares to attract investment.<\/td><td>&nbsp;<\/td><\/tr><tr><td rowspan=\"3\"><strong>Limited Liability Company (S. de RL)<\/strong><\/td><td>\u2013 Capital divided into shares.<\/td><td>\u2013 Simplicity in administration.<\/td><td>\u2013 Less attractive for external investors.<\/td><\/tr><tr><td>\u2013 Limit of 50 partners.<\/td><td>\u2013 Protection of the personal assets of partners.<\/td><td>\u2013 Limit on the number of partners.<\/td><\/tr><tr><td>\u2013 Non-negotiable contributions.<\/td><td>\u2013 It requires less paperwork than the SA<\/td><td>&nbsp;<\/td><\/tr><tr><td rowspan=\"3\"><strong>Simplified Joint Stock Company (SAS)<\/strong><\/td><td>\u2013 It can be formed by a single partner.<\/td><td>\u2013 Low initial costs.<\/td><td>\u2013 Does not allow annual income greater than 6 million pesos.<\/td><\/tr><tr><td>\u2013 Digital 100% process.<\/td><td>\u2013 No notary public required.<\/td><td>\u2013 Limitations in attracting partners and external investment.<\/td><\/tr><tr><td>\u2013 Ideal for small businesses.<\/td><td>\u2013 Facilitates the rapid start of operations.<\/td><td>&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">What is the best option for your business?<\/h3>\n\n\n\n<ol start=\"1\" class=\"wp-block-list\">\n<li><strong>Public limited company (SA):<\/strong> Ideal for companies seeking medium or long-term growth, especially if they require significant investments.<\/li>\n\n\n\n<li><strong>Limited Liability Company (S. de RL):<\/strong> Recommended for family businesses or companies that prioritize simpler internal management.<\/li>\n\n\n\n<li><strong>Simplified Joint Stock Company (SAS):<\/strong> Perfect for entrepreneurs and startups who want to establish themselves quickly and at low cost.<\/li>\n<\/ol>\n\n\n\n<p>This table allows you to quickly view the main characteristics of each company and helps you choose the best option according to your business needs.<\/p>\n<span class=\"et_bloom_bottom_trigger\"><\/span>","protected":false},"excerpt":{"rendered":"<p>El art\u00edculo 1\u00ba de la Ley General de Sociedades Mercantiles (LGSM) establece las siete especies de sociedades mercantiles reconocidas en M\u00e9xico, que son las siguientes: Sociedad de Capital Variable Cualquiera de las sociedades mencionadas (excepto la cooperativa) puede constituirse como sociedad de capital variable, lo que permite que su capital social aumente o disminuya sin [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":4016,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"off","_et_pb_old_content":"","_et_gb_content_width":"","_joinchat":[],"footnotes":""},"categories":[1],"tags":[],"class_list":["post-4015","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - 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