MEXICO Law and Practice Contributed by: Roberto Cannizzo, Carlo Cannizzo, Stefano Amato and Mauricio Moreno-Rey, Cannizzo
For an LLC, there is also no mandatory mini- mum capital required by law. The LLC’s capital will be divided into equity memberships, with each membership representing at least MXN1 or a multiple of that amount. However, there is a restriction on the number of partners allowed in an LLC, with a maximum of 50 partners. 5.5 Applicable Governance Requirements Stock Companies and LLCs The obligations of a stock company and LLC are imposed on the directors by law and by the com - pany’s by-laws. The directors are jointly liable with the company for compliance with legal and statutory requirements as follows: • in relation to the dividends; • for the existence and maintenance of the accounting, control, recording, filing or report - ing required by law; • for the fulfilment of the shareholders’/part - ners’ resolutions; and • for the creation of the reserve fund required by law. Some other special liabilities are provided by law. Generally, a company’s officers include at least one director (who, in such a case, will act as sole administrator). Furthermore, stock compa - nies must designate one or more statutory audi - tors; this requirement does not apply to LLCs. Directors or employees of a company cannot be internal auditors for that company. FIBRAs FIBRAs must comply with certain corporate gov - ernance standards and best practices among shareholders, investors, management and the
technical committee, like all companies listed on the Mexican Stock Exchange (BMV). 5.6 Annual Entity Maintenance and Accounting Compliance In Mexico, there is no annual fee/tax for the sim - ple existence of a company. Since companies are subject to periodic compliance with admin - istrative and tax requirements, the maintenance cost will depend on the nature, complexity, volume and frequency of the transactions and operations carried out. 6. Commercial Leases 6.1 Types of Arrangements Allowing the Use of Real Estate for a Limited Period of Time Mexican civil law recognises four arrangements that allow a person to occupy and use a real property for a limited period, without buying it outright: • the lease ( arrendamiento ), ie, the agreement through which one of the parties grants to the other party the right to temporarily use or enjoy a property, and the other party agrees to pay a certain price for such use or enjoy - ment; • the commodatum or free lease ( comodato ), ie, the agreement through which one of the parties grants to the other party the free use of a property; • the real right of occupation ( habitación ), which grants to the right-holder the right to freely occupy part of another person’s house, for themselves and/or family members; and • the real right of usufruct ( usufructo ), ie, the real and temporary right to enjoy another person’s property and to receive all the fruits,
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