Requirements to Incorporate a Public Limited Company: Documents, What it is and MORE

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Incorporating a Limited Company is a radical decision and it comes with many benefits as well as many responsibilities. In order to form it, it is necessary to comply with the Requirements to Incorporate a Public Limited Company.

In this article, the steps and documents necessary to establish it are presented and also everything you should know about this type of company, highlighting each of the benefits of the Public Limited Company.

If you really want it, stay and read and find out how to set up a limited company.

What are the Requirements to Incorporate a Public Limited Company?

Train and constitute a Public Limited CompanyIt is a very important decision and it is necessary to have a successful and uncomplicated process, to know everything about the procedure to be carried out, the requirements that must be met and the documentation that is requested in Mexico.

Because of this, this section presents the requirements or Basic requirements to establish a Public Limited Company (SA)

Company name

It is necessary that the company to be formed has a name that identifies it and differentiates it from other existing companies. In other words, the company name is the name assigned to all capital companies.

It is one of the main requirements to form a Public Limited Company and the negative certification of the company name that the company owns must be submitted.

Minimum capital

Between the Requirements to establish a Public Limited Company, the minimum capital established to form this type of company is requested. In Mexico, the minimum amount of said capital is $ 50,000 Mexican pesos.

Domicile of the Company

The domicile of the company or registered office, refers to the physical establishment of the company, in other words, its headquarters.

In order to establish a Public Limited Company, it is requested that the registered office be owned and it must appear in the bylaws. It is necessary to present a document that proves the domicile and your address.

Duration of the Company

It refers to the time of function or activity of the company. In the case of companies that are to be formed with an indefinite duration, it is not necessary that it appear in the bylaws.

In the event that if it has a defined duration, it must comply with the minimum time allowed by the bylaws and the days are counted from the date on which the deed of incorporation of the Company is granted.

In this sense, a document must be presented that certifies the duration of the company to be formed.

Admission or exclusion of foreigners in society

Over the years, it has been shown that the admission of foreigners to societies fosters their development and success. That is why it is highly recommended to promote international relations.

In Mexico, this strategy has become a practice, through the signing of treaties, agreements to integrate and admit foreigners into societies, providing greater opportunities for international trade.

Despite this, there are also some aspects that must be considered, among them is the fact that admitting foreigners directly can cause a decrease in opportunities for national companies, as well as problems with adaptation to the conditions of Mexico by foreigners.

Now, it is important to think well about this and decide whether to admit or exclude foreigners in society. Once decided, it is necessary to know what is established in the Foreign Investment Law (LIE), specifically Art No. 2.

Based on this article, an admission or exclusion clause must be generated and included in the statutes, as the case may be, and thus comply with the Requirements to Incorporate a Public Limited Company.

Social Objective

Every society, including the Public Limited Companies, has an objective or purpose, which is called «Social object» and it refers to the end of the company, to which it is going to dedicate itself and to develop.

It is necessary that the Corporate Purpose is accredited and specified in the statutes, determining the activities to be carried out by the company.

Shareholders of the Company

The constitution of all Anonymous society, It requires a minimum number of shareholders, which is at least 2 shareholders.

Every corporation will have a capital divided among the shareholders and it is necessary to establish a corporation that the shareholders comply with the provisions of the law. To do this, read Art. No. 89 and 90 of the LGSM.

All the personal data of each shareholder of the company must be submitted.

Board of directors

For the constitution of a Public Limited Company it is necessary to have a Board of Directors, which must have at least 3 members and a maximum of 15 members.

Among the requirements to form a Public Limited Company, the data of the members of the board of directors must be submitted.

Commissioner / s of the company

The Commissioner of a public limited company has the function of assisting with voice, but without vote and they fulfill certain functions within the company. To learn more about how it works, you can access here.

Within the requirements to establish a public limited company, the data of the company commissioner must be provided.

Documents Needed to Incorporate a Public Limited Company

Once you have completed what is necessary to form a Anonymous society, you must make sure you have the following documentation:

  • Negative certification of the company name.
  • Proof of payment of the minimum amount established.
  • Present proof of address.
  • Document that proves the duration of the company.
  • Document indicating whether foreigners will be admitted or excluded from the company.
  • Accredit the corporate purpose in a document that describes the activities that the company is going to carry out.
  • Personal identification document and other personal data of each of the partners, the members of the administrative council and the commissioner.
  • Legal permits.

It is necessary to supply all the required documents to avoid delays and inconveniences in the process of incorporation of the Corporation.

How is the procedure?

In order to establish a Public Limited Company, it is necessary to complete a series of steps. The procedure is explained below:

  1. To begin, it is necessary to request a permit to be able to start the company, starting as a company as a legal entity before the SRE.
  2. As soon as the name of the company is established, the articles of incorporation are created and, if it is approved, the corresponding document is formalized.
  3. The applicant must register the company with the Tax Administration Management or SAT.
  4. Then, once this is done, you must go to the Ministry of Foreign Relations and notify about the Corporation. Generally this process is carried out by the notary in charge.
  5. The permit for the use of the land must be processed.
  6. Finally, the Public Limited Company must register with the corresponding regulatory entities, including IMSS, INFONAVIT, etc.

Follow each of the necessary steps and make sure you don’t skip any.

Advantages of a Limited Company

In this section some of the advantages or benefits of forming a Public Limited Company are mentioned.

  • One of the advantages of a limited company is that it is much easier to raise the necessary capital.
  • You have the opportunity to incorporate investors.
  • It is a type of society that is easy to manage and administer.
  • You can generate good income if you have the right team.
  • It is an easy company to establish.
  • Among others.

These are some of the advantages or benefits of forming a Public Limited Company.

What is a Limited Company?

A Public Limited Company (SA) It is a type of entity or organization, which is of the capitalist type. It consists of an organization whose capital is divided between the members of the company, which must be at least 2 people.

There are two types of Society Anonymous:

Open Stock Company

A Open Stock Company It is one that gathers its capital in order to establish itself, through public financing, and the intervention of public savings.

Closed Stock Company

In the case of Closed Stock Company, it is not necessary public savings to be able to raise the capital necessary for its constitution.

Closed Stock Companies pool their capital by contributing their own money from each of the shareholders.

Follow the steps, meet the Requirements to constitute a Public Limited Company and succeed in the process.

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