New Rules to Incorporate a Limited Liability Company in Mexico

On March 14th, 2014 was published on the Mexican Official Gazette a new set of rules to incorporate Mexican companies; one of the major features of this law reform is the creation of a brand new category of limited liability corporations: Sociedad por Acciones Simplificada or S.A.S.

This new legal entity shall be a share company owned by one or several shareholders; this is a remarkable step because before it was a mandatory minimum of two shareholders to incorporate and conduct business as limited liability entity. Another improvement is the process of incorporation; now, a company could be incorporated electronically trough the Ministry of Economy and could take few days rather weeks.

This category is designed to support small and medium-size business up to five million Mexican Pesos. This law reform is a decisive action to facilitate and encourage investment and entrepreneurship.