Variable Capital Corporation (Sociedad de Capital Variable)

This is a variable that can be added to the following kind of corporations in order to have more flexibility regarding the capital amounts:

•       Limited Liability Company (Sociedad de Responsabilidad Limitada)

•       Corporation (Sociedad Anonima)

Conditions and requisites C.V.

•       In this kind of corporation, the social capital could be affected by increase in the contributions, or by new partner admission, as well as capital decrease by partial or total contribution take over.

•       The conditions that will rule the Variable Capital Company will be the same as the ones that rule the Corporation or Partnership in particular and by those of the Corporation (S.A.) regarding administration.

•       Example: S. de R.L. De C.V.  or S.A. De C.V. 

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Corporation (Sociedad Anonima)

This is the most common way to form a legal person in which the most relevant elements are the capital integration and the liability limitation of the partners. The personal characteristics of the partners go into second term (legal or natural person, national or foreigner) as each is represented by his amount of his contribution to form the social capital. Meaning that the partner that contributes the most, will also have more representation  and thus more votes. The liability will be always limited in the amount of the contribution.

Conditions and requisites S.A.

•       Minimum of two partners, with at least one company share subscribed

•       The social contract must establish the minimum amount of social capital which must be fully subscribed;

•       Minimum of 20% of the company share must be exhibited in cash

•       The name of the company must be followed by "Sociedad Anónima" or "S.A."

•       The partners liability will be limited only till the amount of their contributions.

•       The social capital will be represented by shares, the value of the
shares will be determined by the partners.

•       The partners will get the name of shareholders.

•       There is no limitation in the number of shares that a
shareholder can have.

•       The shareholders can not make any loan or partial payment over
their shares.

•       No new shares can be issued until the previous ones have been fully paid.

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