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Given that the limited liability company and the stock corporation are the types ofbusiness entities most common in Mexico, further on we will make special mention oftheir operations and characteristics.2. Formation of CompaniesThe formation of all types of business entities and any amendments to their bylaws mustbe carried out before a certifying public officer, who may be either a notary public or acommercial notary.The articles of incorporation of companies should contain:a) The names, nationality, and domicile of the partners/shareholders;b) The purpose of the company;c) The business or corporate name. The business name is formed with the name ofone or more of the partners in the case of partnerships and without restriction inthe case of stock corporations. The limited liability company can be given either abusiness name (the name of one or more of the partners) or a corporate name. TheForeign Relations Ministry (Secretaría de Relaciones Exteriores, SRE) is the agencyresponsible for authorizing the use of business or corporate names;d) The duration of the company;e) The amount of capital stock the company has, which must be in Mexican currency;f) An indication of what each partner or shareholder contributes in money or in kind;the value given to the in-kind contributions, and the criteria used to make suchvaluation. When the company has variable capital, the fixed minimum capitalestablished shall be indicated;g) The business address or domicile of the company, which is the town or city wherethe company is established;h) Under what form of administration the company will be managed and the powersof the managers;i) How the profits and losses will be distributed among the members of the company,taking into account that the profits or losses among the partners/shareholderswho contribute capital must be distributed in proportion to their contributions tothe capital of the company;j) The amount of the reserve fund, taking into account that, pursuant to the LGSM,from the profits shown in the financial statements each year, 5 percent should beseparated for the reserve fund (legal reserve) until such fund reaches one-fifth ofthe capital stock;k) Under what circumstances the company will be dissolved early;l) The bases for liquidating the company and the manner of choosing the liquidators.51Requirements for Establishing a Company in Mexico