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Unit 4. Commercial Companies - Coggle Diagram
Unit 4. Commercial Companies
Concept
Concept of Commercial Company
"A commercial company is a company that exists under a name or corporate name, through the agreement of wills of a group of persons called partners, who join their efforts and capital for the realization of a common purpose of an economic nature with the purpose of profit".
Typologies
The mercantile companies can be constituted under the regime of fixed capital or variable capital, therefore, it should not be thought that the variable capital company is one more company that we have omitted, but that any company can adopt this modality.
The incorporation of commercial companies must be done before a notary public, by means of a corporate deed that will be registered in the public registry of commerce.
Commercial companies are governed by the general law of commercial companies and cooperative companies by the general law of cooperative companies, the incorporation of both must be recorded in a corporate deed before a notary public.
The following are some of the main items of information that must be included in the articles of incorporation of a corporation.
The names, nationality and domicile of the individuals or legal entities that make up the company.
The object or line of business of the company.
The amount that each partner contributes as capital, specifying the amount in cash and in kind.
The appointment of the administrators, their powers and the designation of those who shall use the corporate signature.
The cases in which the company must be dissolved in advance and the manner in which the liquidation must be carried out.
Features
General characteristics of commercial companies
At the moment of incorporation of a company to the legal life, a new person is a legal subject that has the capacity of enjoyment and capacity of exercise different from the persons that conform or integrate it and that create a different entity which has its own characteristics, which are the following:
Legal capacity:
It is the aptitude to be the holder of rights and obligations, but in commercial matters the capacity is limited or conditioned by the purpose of the company, this means that it can only have rights and obligations that are contained within its corporate purpose..
Equity (own):
The patrimony of a company is the set of assets, rights and obligations owned by a corporation and is classified into the following groups:
Assets:
This refers to the assets and rights of a company and can be contributed at the time of incorporation, in a capital increase, in an increase of the company's assets or with the profits obtained by the company.
Equity Liabilities:
The liabilities of a company are constituted by its obligations, which can be acquired from the moment of the creation of the company and consist of debts and obligations to give or to do.
Name:
In commercial law it is also called name or corporate name and is defined as the set of characters that identify an individuality, distinguishing it from others.
Address:
It is the place where the principal place of business of a corporation would be located. In matters of mercantile corporations, the domicile by common practice is determined in a city, without specifying number, street or neighborhood.
Nationality:
The nationality of corporations will be Mexican when they are formed in accordance with the laws of our country and establish their domicile in Mexico, otherwise they will be considered foreign.
Advantages and disadvantages
Advantages
Perhaps the most important advantage in most partnerships is the opportunity to raise sufficient capital to get a company off the ground.
Forming a partnership is much easier and less costly than organizing a stock company.
Forming a partnership is much easier and less costly than organizing a stock company.
Members of a partnership enjoy more freedom from government laws and more flexibility of action than owners of a stock company. Members can withdraw funds and make decisions of all kinds without the need for formal meetings or legal procedures.
Disadvantages
Limited life, unlimited liability and mutual representation. In addition, if a company requires a large amount of capital, the partnership is less effective in raising funds than a stock company.
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