- 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.