Company Basics
This legal feature allows a company to own assets and sign contracts on its own.
separate legal entity
The most common type, where liability is limited to unpaid shares.
company limited by shares
A business owned and run by one person.
sole proprietorship
The people (more than 1) who own the company.
shareholders
The company continues to exist even if shareholders die or leave.
perpetual succession
A structure used by solo entrepreneurs.
One Person Company (S.A.S.)
A business owned by two or more people, may have general or limited roles.
partnership
The people who manage the day-to-day operations.
directors and executives
The protection that prevents shareholders from being personally liable for company debts.
limited liability
A rare and risky structure with no liability limit.
unlimited company
A flexible structure that protects owners from personal liability.
LLC (Limited Liability Company)
When a company sells shares to the public for the first time.
Initial Public Offering (IPO)
This term refers to a company's ability to continue operating regardless of changes in ownership.
continuity of existence
A company used mainly by nonprofits.
company limited by guarantee
A nonprofit organization structure common in Mexico.
Asociación Civil (A.C.)
Shares offered privately to selected investors.
private offerings
This legal concept shields owners from personal liability unless fraud is proven.
corporate veil
This company owns controlling shares in other companies.
holding company (like Sigma)
A type of corporation that can raise large capital and offers strong liability protection.
corporation
One way companies reward employees using company ownership.
employee compensation through shares