In the complex business world, the choice of the type of corporation is crucial for any entrepreneur or businessman. Each type of corporation has its own characteristics and advantages, and the right choice can make all the difference in the success and efficient operation of a business corporation. In Mexico, the most common types of corporations are the Sociedad Anónima (S.A.), the Limited Liability Company, Sociedad de Responsabilidad Limitada in Spanish (S. de R.L.) and the Simplified Joint Stock Company, Sociedad por Acciones Simplificada in Spanish (S.A.S.). The following is a brief description and comparison of these options.
Categoría: Business Law
THE LATEST REFORM TO THE GENERAL LAW OF CREDIT SECURITIES AND OPERATIONS: A STEP TOWARDS DIGITALIZATION
On March 26, 2024, a decree was published in the Official Gazette of the Federation that reforms, adds, and repeals various provisions of the General Law of Titles and Credit Operations (LGTOC) and the General Law of Organizations and Auxiliary Credit Activities (LGOAAC). This reform represents a significant advance to encourage and provide greater legal security to the celebration of credit operations and negotiability of credit titles through electronic means and other technologies.
REMOTE SHAREHOLDERS’ MEETINGS
The holding of shareholders’ meetings is a fundamental requirement for the general operation and decision making within all Mexican companies. However, with the pandemic and the evolution and strengthening of communication technologies that came with it, the meetings and, therefore, the shareholders’ meetings, held remotely and by electronic means. For this reason, the Congress of the Union recently discussed the possibility of Mexican companies holding meetings through these electronic means.
REGISTRATION OF MEXICAN LEGAL ENTITIES IN THE NATIONAL REGISTRY OF FOREIGN INVESTMENT
The National Registry of Foreign Investment («RNIE», for its acronym in spanish) is the area of the Mexican Federal Government, administered by the Ministry of Economy, in charge of accounting and following up on foreign investment flows in Mexico. It was created in March 1973, with the publication of the Law to Promote Mexican Investment and Regulate Foreign Investment (replaced by the current Foreign Investment Law), with the main purpose of monitoring compliance with the provisions on foreign investment and to have a source of information that would allow to know the behavior of foreign investments in the country.
E-SIGNATURES: TECH’S ANSWER TO DOCUMENT AUTHENTICATION
Electronic signatures, also known as e-signatures or digital signatures, are digital representations of our handwritten signatures that are used to express our consent and validate documents and transactions online. Electronic signatures are becoming increasingly popular as technology continues to advance and change the way we do business. Electronic signatures give us the ability to share documents and express consent digitally without the need for physical signatures or even paper, as well as promoting a more environmentally friendly approach to handling and signing documents under our care.