This article will explain:
The principle aims of creating a unipersonal company in
How the entity has already developed in other countries.
The definition of a unipersonal company, and how it differs
from a public corporation.
What benefits it could bring for Mexicans and foreigners, and
how these benefits will be fully realised.
The creation of a unipersonal company in Mexico is currently in
the proposal stage. It was approved by the Cámara de
Diputados (Chamber of Representatives) in February 2008, and
could potentially be set in law within a year.
The Ley General de Sociedades Mercantiles (General Law
of Commercial Corporations) regulates business enterprises in
Mexico. One of the law's requisites is that all companies
comprise at least two partners or shareholders.
With the aim of boosting the economy, on 27th March 2008 the
Cámara de Diputados approved the potential
formation of the unipersonal company, which will have only one
partner or shareholder. Its creation will represent a complete
upheaval of Company Law in Mexico.
Origin of the unipersonal company, and its development in other
Several European countries have already adopted various legal
stances with regard to the unipersonal company, and the creation of
this entity in Mexico aims to bring our legislation into line with
those of other countries.
In Europe; Germany, Portugal, Sweden, Holland, Denmark,
Luxembourg, Belgium, Spain and Italy have adopted the unipersonal
company within varying legislative guises. In Latin America;
Argentina, Brazil, Chile, Paraguay and Columbia have also
integrated unipersonal companies into their legal systems.
Reasons for creating a Unipersonal Company in Mexico
The principal reason for creating a unipersonal company in
Mexico is to incentivise individual professional activities and to
avoid single individuals forming commercial entities which they
disguise as "companies". (It is common that
businesspeople enlist the legal involvement of a relative or third
party so as to accord with the current law. However, the third
party often has no real involvement in the business.)
Over the years, changes in Mexican legislation have reduced the
number of partners or shareholders required to create a commercial
company. This has led to increased investment in small businesses,
increased self-employment and greater economic development. It is
expected that the creation of a unipersonal company will build on