If you want to start your own business, the first ítem on your list should be to meet all the requirements of the corresponding laws. Remember, this will give you reliability and certainty with your clients and it will guarantee the formalization of your entrepreneurship.
We must first understand the concept of LEGAL PERSON (PERSONA MORAL)
This refers to a human or non human entity constituted through the protocolization of the Constitutive Assembly Act signed before a Notary Public, where one or more partners will operate to develop any legal activity, in sectors such as comercial, manufacture, construction, services, academic, altruistic, etc.
Mexican Law recognizes, among others, the following:
- A. (Sociedad Anónima) (Public Limited Company)
- de R.L. (Sociedad de Responsabilidad Limitada) (Limited Liability Company)
- C. (Sociedad Civil)(Civil Society)
- C. (Asociación Civil) (non profit Association)
- P.R. (Sociedad de Producción Rural) (Rural Production Company)
Meet all the requirements to start a business
The first step is to apply for authorization to the Secretary of Economy, defining the business name (Razon Social) under which you want to operate. You must provide at least five different options.
The Secretary will then go through its database in order to see if the given options are viable according to the duplicity criteria, that is to check if the name you chose or a similar one is already taken.
Once you have their authorization, you must proceed to establish the STATUTES, that is, the laws and norms under which the partners will operate.
The activities or projects that you want to develop will determine which alternatives you must select in order to constitute your business (LEGAL PERSON).
Some of the alternatives may have variables that will allow you to do different types of operations, some are restricted to a specific type of activity and some others will give your business certain types of tax benefits. That is why is so important to seek a qualified legal advisor in order to choose the best option for you.
It is convenient to have a LEGAL PERSON for it to take on responsibilities for clients, suppliers, employees and authorities, since this will provide certainty to the partners or business associates, it will portray your business as a serious and solid one, and it will be the one subjected to the compliance of the business obligations.
The types of companies we describe here are all regulated by the Trade Law, the General law of Comercial Societies and the Civil Code.
This process will take between 15 and 20 business days.
We recommend to gather general information regarding the partners such as ID, Registration code before the Tax Secretary,etc.
We at Velázquez & Velázquez Déciga, S. C., are experts in legal advise for small and medium-sized enterprises.
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