MEXICO Law and Practice Contributed by: Allan Kaye Trueba, Mariana Santillán Trejo and Rebeca Sanchez, Aziz & Kaye Abogados, S.C.
Aziz & Kaye Abogados, S.C. Edificio Reforma Plus, Paseo de la Reforma #2620 Suite 304, Col. Lomas Altas, Alcaldía Miguel Hidalgo, C.P. 11950, Mexico City Mexico Tel: +52 555 985 6605 Email: contacto@azizkaye.com Web: www.azizkaye.com/english/index.html
1. Introductory 1.1 Forms of Corporate/Business Organisations
porate name. Variable capital companies are typically preferred as there are fewer formalities involved in adjusting the variable portion of their capital stock. Limited liability companies and corporations are the most common form of business organisa - tions for conducting business in Mexico. Limited Liability Companies Two or more partners can set up a limited liability company, but the number of partners must not exceed 50. The partners in a limited liability com - pany are liable only to the extent of their equity contribution. Any person who is not a partner but allows the use of their name in the name of the company is liable for the company’s transac - tions up to an amount equal to the largest equity contribution in the company. Equity interests are not represented by stock certificates, nor are they freely transferable. The admission of new partners and any assignment or transfer of equity interests must be approved by the partners representing at least the majority of the capital stock, unless the company’s by- laws provide for a higher proportion. In general,
The main business organisations in Mexico are governed by the General Law of Business Com - panies ( Ley General de Sociedades Mercantiles ) and are as follows: • limited liability companies ( sociedad de responsabilidad limitada ); • corporations ( sociedad anónima ); • general partnerships ( sociedad en nombre colectivo ); • limited partnerships ( sociedad en comandita simple ); • limited joint-stock partnerships ( sociedad en comandita por acciones ); • cooperative companies ( sociedad coopera- tiva ); and • simplified corporations ( sociedad por acciones simplificada ). Any of these may be incorporated or converted into a variable capital company, in which case the company must add the words “of variable capital stock” ( “de capital variable” ) to its cor -
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