• Mexico Introduces the First Single-Member Corporation: The Simplified Stock Corporation
  • April 15, 2016 | Authors: Antonio Franck C.; Blanca Luévano Garcia; Fernando de Leo
  • Law Firm: Jones Day - Mexico, D.F. Office
  • On March 14, 2016, the decree creating the Simplified Stock Corporation (Sociedad por Acciones Simplificada, or "SAS"), the first single-member corporation in Mexico, was published in the Federal Official Gazette.

    The main features of the SAS are the following:
    • The corporation may be electronically incorporated by one or more individuals, with no further requirements.
    • The total income of a SAS cannot exceed $5'000,000 (five million Mexican pesos).
    • Registration before the Public Registry of Commerce, as well as the submission of the annual financial report, will be made available in electronic format.
    • The corporation's existence will be evidenced by a document electronically generated by the Ministry of Economy's website during the corporation's formation.
    • Shareholders may not concurrently hold shares in any other commercial entity, as indicated by the Mexican Stock Exchange Act.
    • The SAS will be exempt from forming a legal reserve fund.
    • All shares will be equal in value and will grant the same rights to their respective shareholders.
    • One of the shareholders will be appointed administrator of the corporation.
    • The shareholders will be jointly or severally liable with the corporation, as applicable, if a criminal offense has been committed.
    Individuals will be able to incorporate a SAS beginning on September 15, 2016.