1E9Ct5D

CHAPTER IIIRequirements for Establishinga Company in MexicoFirst, it should be mentioned that the Civil Code (Código Civil) regulates the establishmentand operation of civil partnerships (sociedades civiles) and the General Law of CommercialCompanies (Ley General de Sociedades Mercantiles, LGSM) regulates the establishment andoperation of business entities (sociedades mercantiles).The civil partnership is a company in which the partners combine their resources andefforts for a common purpose that is for profit but is not considered commercial trade.Conversely, business entities can be defined as companies in which the partners or shareholdersagree to combine the resources or efforts for a common purpose that is for profitand is considered commercial trade.In this chapter we will discuss business entities, particularly the stock corporation(sociedad anónima) and the limited liability company (sociedad de responsabilidad limitada),as well as the establishment in Mexico of a branch of a foreign company throughwhom commercial activities can be carried out.We shall also discuss the establishment of a non–income earning representative officethrough which foreigners can have a presence in Mexico without engaging in commercialtransactions.491. Types of CompaniesThe LGSM recognizes as business entities the general partnership (sociedad de nombrecolectivo), the limited liability partnership (sociedad en comandita simple), the limitedliability company (sociedad de responsabilidad limitada), the stock corporation (sociedadanónima), the limited liability stock partnership (sociedad en comandita por acciones),and the cooperative (sociedad cooperativa). The LGSM regulates the operations of the