You need to know about the mercantile companies Especially if you are about to start a company or an undertaking, because if you intend to govern yourself according to the provisions of Mexican law, below you will know the different types so that you can choose according to your convenience and other concepts about the general law of commercial companies that are fundamental for you so that you can make the best decision.
What are the classes of commercial companies and their characteristics
The mercantile companies They are entities that are made up of two or more people who come together with the objective of a common purpose with a lucrative purpose.
According to the activity they carry out is its division and characteristics, there are for example:
- The cooperative society, which is the one that brings together members who must be at least 5, contribute a capital that is variable and that capital is represented by certificates that have a nominal value.
- The joint-stock company that is made up of regular partners who meet by contributing a share capital through titles or shares.
It is characterized by the response to an event that affects the company, since the totality of the debts that it may have does not affect the capital contributed but rather that capital contributed by the partners is the limit in response.
- The limited liability company that is born by virtue of eliminating everything that requires the legal formation of a public limited company, that is to say that in the face of the debts that the company may have generated, the personal assets of the partners are kept safe and they only respond until the limit of the value of that contributed capital.
- The limited partnership by shares, which is made up of one or more partners who are limited, whose liability is unlimited and limits the value of the functional capital up to 50,000 pesos.
- The simple limited partnership, which is formed from the meeting of two or more people who can be moral and physical with the purpose that by virtue of that union a legal person is created in order to generate profits.
While the liability of the limited partners is unlimited, the liability of the limited partners is limited to the contributions they have made.
- The partnership in collective name, which can be made up of a minimum of two partners without requiring a maximum amount. It is characterized by the responsibility of the partners that is subsidiary, joint and limited. The name of one of the partners or all of them must appear in the business name and “company” as the final word.
Types of commercial companies
Taking into account that the different types of mercantile companies They are the anonymous ones, the simple or joint limited companies, the collective ones, it is important that you can choose one of them according to the activity you are thinking of developing and according to your interests.
It is also important that you know that consulting a notary is free and you will get good advice.
- If you want all the partners that will make up the company to limit their liability, you should opt for a limited liability company, an LLC or a public limited company, the SA, as they are the two types of companies most chosen as a social model.
- If you plan to create a company made up of a single partner, it is an alternative as a sole proprietorship, because although it was formed by more partners, due to different circumstances it could have remained as the property of only one.
In this case it can be limited or anonymous. You must register the company in the commercial register within a period of 6 months and from then on, the sole partner will be the one who responds in an unlimited and personal way about the debts that the company may have incurred since it became sole proprietorship.
- The collective society is characterized by its partners who have the obligation to respond to social debts in a joint and unlimited way and even contribute workforce and capital and the name of the partners must appear in the name of the company or, failing that, it is added company and company.
Even the collective society must be made up of at least two people, who as partners contribute capital that can become credits, rights or fiduciary money.
The partners directly manage the company, monitor it and take charge of controlling the accounting and administration.
- Although the labor society is not the most common, it is necessary that you know its main characteristics because it raises with a transparent nature with the direct contribution of the workers, which avoids the misappropriation of funds and the link that is established between the resources to The disposition of the company and the emplacements becomes much more direct even though a non-working partner may intervene.
- Capitalist companies are made up of partners whose liability is limited to corporate debts, since they are only liable up to the value of their contributions. They are limited liability companies and public limited companies.
- The personalistas, in which their partners have unlimited liability, that is, they respond to social debts with their personal assets. They are the limited or collective.
- The simplified joint stock company, which is made up of one or more natural persons, whose responsibility is limited to the payment of the contributions that are represented by shares. Its main characteristic is the impossibility that its shareholders cannot belong to another commercial company at the same time and its income per year cannot exceed 5 million pesos.
Types of mercantile companies in Mexico
In Mexico, according to current legislation there are the following:
- The corporation that is made up of partners who are obliged to pay the shares that correspond to them after the share capital has been divided, since that capital is represented by registered titles that certify the rights and quality of the shareholders.
Its existence is based on the company name and the shares of the partners have the same rights and value, although the division of capital into different types of shares is stipulated in the company contract.
- The limited liability company whose existence is based on the company name or company name. It is a society formed by partners whose obligation is limited to their contributions and has a limit of 50 partners to be formed.
- The limited company by shares whose existence is also based on the company name. It is made up of one or more partners who are limited partners whose liability is joint, unlimited and subsidiary against corporate debts and limited partners whose obligation is limited to paying the shares.
- The simple limited partnership whose existence is based on the company name. It is made up of one or more limited partners whose liability for corporate debts is unlimited, subsidiary and joint, and by limited partners with limited liability for their contributions.
- The company in collective name in which its partners have joint, unlimited and subsidiary responsibility against social obligations and also exists when establishing a company name.
- The cooperative society is a social organization made up of individuals united by a common interest who carry out economic activities of distribution or production of services or goods.
Preferred shares general law of mercantile companies
Preferred shares can be participatory, which indicates that the holder can participate in the remaining dividends once the preferred dividend is paid.
They can also be non-participatory, which does not grant its holder the right to participate in the remaining dividends despite having paid the preferred dividend.