Mexico: In the pit

Mexico: In the pit

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In many ways, Mexico appears on the business landscape as a good investment destination. Knowing its business societies becomes necessary, besides the fact foreigners can take part in them with the only requirement of expressing it on the company’s articles of incorporation.

Public Limited Company (PLC)

They require a minimum start up capital of $50,000 pesos, and they are made up at least of two stockholders, who would take responsibility of their equity.

The management will be carried out by a single director or by a board of directors, whose obligations will be those inherent to its position, as well as those which are born from article of association and law. Briefly, we can bring together its responsibilities at three groups: Assembly(calling, results report, and agreements compliance), operation (developing accounting and control systems, record of activities…) and management (relating to financial contribution and its profit). We have to underline that director will have responsibility of society debts.

We have to emphasize that laws plan a vigilance body to supervise and control society activities

Limited Liability Company (LLC)

In this case, company is made up of associates’ contributions, but they can’t sell stocks, so it’s a disadvantage. Minimun start up capital is $3.000 pesos, and they have a familiar perspective.

Directors are called manager here, and it can be an associate, but their obligations are the same of directors in PLC.Vigilance bodies aren’s compulsory here.

In Evolutiza Lawyers & Tax Advisors, we have extensive experience in advising on Mexican investments possibilities. Do not hesitate to contact us.

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