Trade Policy and Negotiations Division - Essay Example

If a person is willing to establish a local corporation then the procedure is really very simple. First of all, the corporation is registered by getting provisional registration in a maximum of 48 hours, and final registration is obtained in a maximum of four months. Whereas a corporation can start functioning once the provisional registration is done.For getting the local corporation registered, it must have at least two members, and the corporation’s charter is executed in the form of Public Deed.

Spanish Law allows the following types of companies to be established.General Partnership (Sociedad Colectiva)Limited Liability (Sociedad de Responsabilidad Limitada)Limited Partnership (Sociedad en Comandita Simple)Special Limited Partnership (Sociedad en Comandita por Acciones)Stock Corporation (Sociedad Anonima)But the Corporation you are interested in falls under the category of establishing Foreign Corporation Branch. Aspects of developing such a corporation in Mexico are listed below in detail.

Foreign Corporation BranchA foreign corporation that needs to establish a branch in Mexico is required to fulfill a few legislative steps while getting registered. Commercial registration is awarded to a foreign corporation once all the steps listed below are fulfilled.First of all foreign organization needs to produce a legal copy of all the by-laws and articles of the corporation in front of Mexican establishment and also it needs to sign a bond in favor of the Mexican Government.A declaration is submitted to fulfill all the legal obligations while rolling up the business from Mexico.

The latest financial statements are submitted to the Mexican Government.All legal documents are translated into Spanish by the accredited translators and authenticated by the Ministry of Foreign Affairs.All documents are dully verified and Commercial Registry checks if there is any opposition while setting up the new branch in their country.Final registration is obtained within four months of the date of registration and operations can be started within a year.Dear Isabella, as far as ‘Sociedad en command’ is concerned, it is applicable to the establishment of a foreign branch which is governed by at least two general partners and a few limited partners.

This rule does apply to the corporation you are getting to start. Also, starting your new branch in Mexico based on this law helps you eliminate all other remittances and expenditures other than taxes to your business. Mexico is an open market for foreign business therefore; you can clearly follow this law as compared to NAFTA in your business. NAFTA(Canada) does supersede this law only if Mexico would not provide an open market environment. You are already getting a subsidy for launching a new branch in Mexico by Sociedad en command which is providing you with a number of other benefits as well including a reduction in business running costs.