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Commercial companies in Mexico

The General Law of Mercantile Companies in its article 1º. Recognizes seven types of companies, which are the Public Limited Company (S.A.), Limited Liability Company (S. de R.L.), Collective Name Company, Simple Limited Partnership (S.C.S), Limited Partnership by Shares (S. EN C.) and by a decree published on March 14, 2016, the Simplified Stock Company (S.A.S) was officially added.

The most recent integration of the Simplified Stock Company, by definition, is one that is constituted by one or more natural persons who are only obliged to pay their contributions represented in shares.

One of its advantages is that it can be established by a single partner, also, unlike other companies, it can be established electronically, and its function is to promote the creation of micro and medium-sized companies since the annual income must not exceed 5,000,000 (five million 00/100 m.n.) pesos, which reflects that their focus is aimed at businesses that are just starting up.

By Lic. Alexis Maximiliano Román y Román

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