News On Mexican Simplified Stock Company (Sociedad Por Acciones “SAS”)
To our Clients and Friends:
Please be advised that on March 14, 2016, the Mexican Federal Government published in the Official Gazette of the Federation the decree that reforms and adds several provisions of the General Law of Mercantile Companies that allows individuals to establish a new Simplified Stock Company (Sociedad por Acciones “SAS”), legal concept that will simplify the creation/incorporation of small companies in just 24 hours and through an electronic system issued by the Ministry of Economy.
This reform is designed to establish these types of companies that do not exceed five million pesos a year in revenue, and so they can have one or more shareholders/partners (individuals).
All shareholders of SAS’s, must have their own advanced electronic signature issued by the Tax Administration Service (SAT). Furthermore, the electronic system for the incorporation of these companies will be managed and authorized by the Ministry of Economy and its performance and operation is governed by the general rules to that effect will be issued by the Ministry itself.
For further reference please go to http://dof.gob.mx/nota_detalle.php?codigo=5429707&fecha=14/03/2016 to view the Spanish version of the corresponding decree.
Ernesto Velarde Danache, Inc.