President Enrique Peña Nieto enacted the Simplified Corporations Reform.

The General Corporations Law Reform creates a new partnership scheme called Simplified Joint Stock Company (SAS) which seeks to create more businesses and increase their likelihood of consolidation.

”Lawmakers of all political persuasions approved this reform for the benefit of entrepreneurs. The wide support for this initiative confirms the broad consensus that exists in the country to support those who wish to set up business and contribute to national development.”

Benefits

Thanks to the Simplified Joint Stock Company scheme, for the first time ever, the process required to set up business will be as fast as the 21st century Mexican entrepreneurs require.

- Under the previous legislation, the average cost of setting up business was $20,000 pesos, and the process could take up to six days. Now, it will be possible to create a company in 24 hours at no cost.

- In the past, it was necessary to appear before a notary, whereas nowadays the process can be done online.

- Previously, entrepreneurs had to hire a lawyer or an administrator to advise them on setting up business. This is no longer necessary under the new reform, since pro forma statutes and model provisions are available to assist entrepreneurs with the management and administration of their firms.

- Before, a minimum of two partners was required to form a company, whereas it is now possible to create a company with a single partner and no need for minimum capital.

- During a second stage, efforts will be made to enable the electronic process used to set up business to allow entrepreneurs to register with the SAT and IMSS and obtain operating licenses at the municipal level, where they are engaged in low-risk activities.

“Never before has it been so easy, quick and inexpensive to set up business in Mexico. Thank you very much to the lawmakers for passing and materializing this initiative. I am confident that this new partnership scheme will allow there to be more companies in Mexico and enable them to create more and better jobs for Mexicans.”