Chihuahua, Chih., March 17, 2021.
Dear Clients and Friends,
As part of the corporate legal compliance, we kindly remind you that pursuant the provisions of the Mercantile Corporations Law and the Foreign Investment Law, you must annually carry out the following:
MERCANTILE CORPORATIONS LAW
Every Company (S.A. or S. de R.L. de C.V.) is obliged to hold a Shareholders/Partners Meeting during the first four months of each year, the purpose of the Meeting is to approve the past fiscal year, in this case -2020-, approving the performance of its Administration and ratifying or appointing the members of its Board of Administration or Sole Administrator, as well as the Examiner and Officers of the Company, for the fiscal year 2021.
This Meeting shall be held before April 30th, 2021.
Likewise, in compliance with the Tax legislation, it is mandatory to notify the Shareholders or Partners on the due compliance of the tax regulations during the 2020 fiscal year.
In order to draft the corresponding minute, as well as the documents it must include, we will require i) copy of the financial statements of fiscal year 2020 or the annual tax return of fiscal year 2020 and ii) the names of the Board Members, Examiner and/or Officers that will be appointed or ratified for the year of 2021. If at this time you do not have the Financial Report by your Auditors, please let us know the result of the fiscal year 2020 (loss or profit), so we may start drafting the corresponding minutes.
FOREIGN INVESTMENT LAW
All Mexican companies with foreign investment are obliged to renew their registration during the first 5 (five) months of each year, pursuant the Law and its Regulation, this Report shall be filed according to their legal/corporate name, on the following terms:
If the corporate name of your Company begins with the letters “A” through letter “J”, the report shall be filed during April; and the companies whose names begin with letters “K” through letter “Z” it shall be filed during May.
Notaries are obligated to inform if a Company has not filed its annual renovation or if is not registered before the Foreign Investment National Registry, in which case, a notice will be performed by the Notary before the Ministry of Economy and this authority will impose a fine to the Company.
Looking forward in providing you with our legal expertise to duly comply with all the aforementioned, our law firm is prepared to provide effective and timely legal support required to comply with the annual legal obligations and prevent any related legal risk.
You can contact either, Rolando Castellanos-Macal at rcastellanos@iclmx.com; and Jorge Almanza-Ríos at jalmanza@iclmx.com; for any further information that you might require.
