Finally, Mexican Corporate Law could land a reform of its own

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During 2013 and 2014, Mexico pushed estructural reforms on several sectors: Energy, telecoms, financial system, and many others. These reforms are building conditions for Mexico to attract investors, and of course, corporate law have been needing a revamp for years.

Right now, Senate is discussing an amendment to corporation law to give the ultimate flexibility to limited liability corporations (SRL), as investment vehicles. If approved, SRLs could be incorporated and liquidated using a new electronic system, which would be connected to the Registry of Commerce and Ministry of Finance, charge free.

On the other side, the House of Representatives is discussing another amendments to corporations law to reduce number of stockholders from SRLs, i.e. create sole proprietorships. For over a decade, legislators have opposed to that amendment, under the argument of preserving our roman law tradition of affectio societatis (will to associate).

If implemented right, the new flexibility offered by SRLs could open seed rounds to early stage startups, along with a stand-by robust corporate control ready to be triggered, if success happens.

Times are changing, and the world is full of tiny entrepreneurs. No jobs, all the opportunities. If Mexico wants to land them, this tiny reform to corporations must be a tree from a big deregulation forest to see.

Photo credit: Making Money – Conceptual – Table saw cutting dollar signs – 3d render with motion blur and selective focus by JohanSwanepoel / Bigstock.com

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. Follow me at https://mx.linkedin.com/in/albertoesenaro or https://twitter.com/DoBusinessMX

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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. Follow me at https://mx.linkedin.com/in/albertoesenaro or https://twitter.com/DoBusinessMX

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