Basic concepts about Limited Liability Companies
The Limited Liability Company (S. de R.L by its acronym in Spanish) that is ruled by the General Law of Commercial Companies (LGSM by its acronym in Spanish), it’s a type of partnership that is commonly used in Mexico, because it offers a simple legal regime and with fewer restrictions than public companies.
It is constituted with a minimum of two partners up to a maximum of fifty, who, as the company points out, will have a limited liability in relation to their contribution that is made up of social parties, which cannot be represented by negotiable securities, to order or bearer, by virtue of which they may only be disposed of in cases where the LGSM and its bylaws allow it.
The shares are indivisible, however, the respective provisions regarding the division rights and partial transfer may be established in the bylaws of the Limited Liability Company. The partners will not have more than one share; when a new contribution is made or a share of another partner is acquired totally or partially, its share value will be increased in the respective amount, unless it is a share that has different rights, in that case, the individuality of the shares will be preserved.
Regardless the Limited Liability Company has a simple legal regime, partners and managers must know the corporate obligations involved in operating a company of this kind; reason why, we put ourselves at your service in order to provide you with our corporate legal assistance, which gives you peace of mind and security to carry out your business targets.