CHOOSING THE RIGHT CORPORATION: TYPES IN MEXICO

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.

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.