Compliance with Corporate Obligations 2012

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Photo credit: World Trade Center México by Alejandro

It is early February, and it is time to start preparing those documents to comply with corporate obligations of companies.

Here is a small reminder of those obligations.

(a)           If a company requires tax audits, most likely would require obtaining an opinion on the status of legal matters. These opinions are used to assess whether the companies are under risks of lawsuit or other legal problems.

(b)           Companies with foreign stockholders are required by the Ministry of Tax to present a filing with basic information of those stockholders. By presenting this filing, foreign stockholders to Mexican companies do not have to register at the Mexican Tax Payers Registry (RFC).

(c)            During first 4 months of year, stockholders must hold an annual meeting to review and approve the balance and results of the previous tax year. For many subsidiary companies, this annual meeting is just red tape, but the truth is that under certain circumstances, company directors may acquire liabilities before third party creditors for default on this obligation.

(d)           As part of corporate obligations, companies are required to update and keep in good standing corporate books. These books reflect corporate life of the company and are these: 1. Stockholders Meeting Minutes containing all meeting minutes and resolutions taken outside meeting, 2. Stockholder registry with all information of stockholders in order to enforce corporate actions, 3. Directors Meeting Minutes containing all resolutions from the directors managing the company, and 4. Capital Variation, recording all increases and decreases of capital.

(e)           Prepare and file the 2012 Foreign Investment Annual Report. This Report contains financial information about companies with foreign stockholders. The Report is mandatory to be filed according to the first letter of the name of the company, this is: companies whose name starts with A to D, the filing is due on April; with E to J is due on May; with K to P is due on June; and with Q to Z is due on July. Oversight to these filings generates a fine.

As you can see, these obligations are really simple, and avoid fines and other liabilities for directors and agents of companies. So, I suggest looking for the appropriate legal professional in order to comply with these obligations.

About the author

Alberto Esenaro

I am a Mexican lawyer with experience in technology, energy, automotive, infrastructure and business. Worked for law firms, international companies and Government bodies on business advice, regulatory compliance and litigation.

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By Alberto Esenaro

About Author

Alberto Esenaro

I am a Mexican lawyer with experience in technology, energy, automotive, infrastructure and business. Worked for law firms, international companies and Government bodies on business advice, regulatory compliance and litigation.

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