Business structure in Mexico

 

Incorporating a foreign company

The two company structures most commonly used in Mexico are:

Public Limited Company (PLC)

  • Can do any kind of business.
  • No minimum share capital.
  • At least two partners. This is incorporated before a public notary or official and has to be registered in a public registry.
  • Flexibility in corporate governance. Leaves its shareholders free to agree on rights of minorities and majorities, as well as to issue different kinds of shares.

Limited Liability Company (LLC)

  • Can do any kind of business.
  • Incorporated between partners who are only obliged and answer for payment of their own contributions.
  • No minimum share capital
  • Made up of at least two partners (up to at most fifty).
  • Incorporated before a public notary or official and have to be registered in a public registry.

Both the PLC and the LLC can also be “variable capital companies”. This means their capital can be increased by subsequent contributions from the shareholders or partners, or by the admission of new members. Likewise, their capital can be reduced by the partial or total withdrawal of the contributions of the members of said companies.