It is necessary that the legal representative has a thorough knowledge of all the obligations and responsibilities of the company in order to avoid future legal or financial problems. In this way, it becomes easier to have adequate control over all activities and take care of the interests of the company. Ultimately, the Company is responsible for any mismanaged communication. Therefore, it is important for your representative to have a clear understanding of Mexican tax and accounting principles for compliance purposes. The shares of the representative bodies of the company are allocated to the company. The administrative bodies (representatives) of the company are liable to the shareholders for the non-performance of their duties and obligations. There will also be cases where the partners will be held liable for the breach of this order and obligations towards the company towards third parties. If you were wondering how many legal representatives a company can have in Mexico? The answer is that they can be more than one. When setting up a company, it is advisable to determine before a notary who or who will be the representatives and to define what their powers will be to make decisions on behalf of the company. It is also convenient to know what the duties of a legal representative are in a company in order to benefit from the expertise that this representative can offer your company. Today, the right legal representative can make all the difference in the global expansion of your business. As in many other Latin American countries, you must appoint a legal representative in Mexico when setting up your business.
Research and communicate with reliable, credible and reputable professionals. Where, in order to perform a legal act or transaction or to intervene in administrative or judicial proceedings, a person claiming to represent a legal person is required to prove that status, he must produce the act or act in which he is represented by the legal person. In addition, depending on the case, the power of attorney authorizing the person to act on behalf of the company or the mandate contract with the formalities prescribed by law may be presented. Application signed by the licensee with appointment of the legal representative. It is someone who acts on behalf of another person and is legally recognized. The person represented may be a natural or legal person. In the case of natural persons, the representative corresponds to a mandatary, while in the case of a legal person, the legal representative may be the director of a company, the manager of a residential complex, etc. The legal representative can register the company in the IMSS. Several conditions must be met to become the legal representative of a Mexican company: In a public limited company, the board of directors or the sole director may be representatives. A legal representative who is familiar with HS codes, local rates and tariffs, and customs clearance requirements will save your business money while maintaining compliance with company regulations.
General data of the person requesting the appointment of representatives and general data of the persons designated as representatives. Registration in the Federal Register of Taxpayers (RFC) for natural persons who have the character of legal representatives, partners, shareholders or partners of legal persons constituted before a notary and natural persons who own real estate whose exploitation is registered in a public deed. How can I manage the recognition of lawyers or legal representatives so that they receive and issue documents related to the government`s private collective or collective licence? Yes, representatives of commercial companies can grant powers of attorney to third parties, which may be special or general powers. Copy of the official identification of each representative. The appointment of the legal representatives of the company is done by general or specific powers (for specific acts) or by the mandate contract, which must be granted or celebrated in accordance with the formalities provided for by©©law. Before entering into a business relationship with a company, you can check if it is legal and if it complies with its tax obligations, our report generates an evaluation taking into account several factors, if you have already been a victim of fraudulent activity or fraud with this information, you can also report it directly to the legal representative. Legal persons, because they are a legal person, have a legal fiction and no material means of action of their own, act through the persons designated to represent them, who may or may not be associated. In principle, the general law of commercial companies determines who are the representatives in the different types of companies recognized by law, as directors or directors who©, depending on the type of company concerned, may be partners or third parties outside the company.
In addition, the representative bodies of companies have the power to enter into agency contracts or to grant others the power to act on behalf or on behalf of the company. There are several considerations you should consider when choosing your company`s legal representation. The position of legal representative comes with a great deal of responsibility within a company. Essentially, they are designed to act in the best interest of the Company at all times. Therefore, it is important to consider the authority and power of your legal representative in your business. Mario Barrera and Miguel Rosas, tax lawyers, wrote an article for Industria Legal magazine about the new requirements for legal representatives of foreign residents earning income in Mexico. According to lawyers, these changes make it more difficult for legal representatives to access tax benefits. They also ensure that taxable persons are in a state of legal uncertainty, as these rules give rise to several interpretations. For the same reason, both authors say that this complicates the operations that foreign residents may have in the country, which could be a reason to transfer investments to Mexico. If for any reason the shareholders of the company decide to cease their activities, dissolve the company and then liquidate it, a legal representative is required. To begin the settlement process, several legal documents must be reviewed and signed. Your legal representative can also be appointed liquidator and act on behalf of your company before the Mexican authorities.
Within a company, various legal activities are carried out that require a person responsible for its implementation, with the aim of benefiting the company. This person is known as the legal representative of a company which, as the name suggests, is the official representative of the company to the authorities. The legality, accuracy and quality of the information contained in this procedural form are the strict responsibility of the dependency, institution or productive enterprise of the State that provided it as an authority for the administration of the procedure due to its attributions and / or regulatory powers. Companies interact on a daily basis with third parties such as public authorities, employees and other natural and legal persons and do so for this purpose through©their legal representatives. For example, if a company is registered in the federal tax register, it must apply to the SAT and do so through©its legal representative. When the company hires employees, it enters into contracts with them through©its legal representative. In practice, entrepreneurs or businessmen often have doubts about the question of the legal representation of companies, about the scope or© about the powers, duties and responsibilities that it entails to be the legal representative of a company. In order to guide people who have doubts about the representation of legal persons or companies, we present questions and answers on the legal representation of companies. It is important to note that the powers granted to a legal representative may be limited.
Each company has a different management structure, so it is important to review the level of authority that a legal representative is allowed to exercise.