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Difference between a commercial company and a civil company.


 

A very frequent question that new entrepreneurs ask themselves is "do I need a civil society or a commercial company?". It is important to distinguish them to define the type of society that best suits them.


What is a company in Mexico?


A company is a group of people who meet or group together to achieve a specific purpose. In Law, this group is consolidated by signing a contract that establishes the rights and obligations of the people who make up that company, as well as the operating rules of the company agreed by the partners. The conclusion of this contract results in the creation of a new person other than the partners (a moral person, an entity).


Mexican law provides for two types of companies, civil and commercial.

  • In a very simple and straightforward way, we could say that civil companies have the purpose of engaging in some activity regulated in the civil code (eg charitable associations, societies for the provision of professional services). So these companies are regulated by civil law.

  • Let us remember that each state of the Mexican Republic has its own civil code, but that does not mean that a company incorporated in X state is prevented from contracting or performing any act in another state.

  • On the other hand, in a very simple way we could say that commercial companies are intended to engage in the trade or sale of merchandise; that is, its purpose is the commercial speculation of merchandise.

Aspects related to trade and commercial companies are of a federal nature, so their general regulation is the same for all companies through the Commercial Code and the General Law of Commercial Companies.


It is important to keep in mind that carrying out a “commercial speculation” is not the same as “carrying out an economic activity”.


Perhaps two examples will help to better understand this idea:


(a) Charitable societies, orphanages, hospitals, special education schools or other similar ones (civil associations); when they organize a raffle, a collection, pottery or receive donations of money, they would be carrying out an economic activity but not a commercial speculation.


(b) A firm of lawyers, architects, accountants, engineers, or any other professionals who carry out the provision of their professional services (civil societies), carry out an economic activity, but it is not a commercial speculation (there is no traffic of goods).


This classification is a little more complex than what we have just seen, but for now it is only convenient to know that they are different concepts; It is even common for the authorities (especially the SAT) to easily confuse them.


So the question "Which company suits me, a commercial or a civil?" can be answered by determining the main activities that the company will carry out.


At Emprende Fácil.store we can help you decide on the best structure for your company, request the company incorporation service that best suits your needs and we will contact you immediately.


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