Legal representation is how companies fulfill their contractual, financial and legal obligations. The organization and management of the company in its relations with third parties (signing contracts, keeping bank accounts, customers, suppliers, etc.) and internal (employees, partners, etc.). The natural entrepreneur is everything and everyone at the beginning of the business. He is the sole shareholder, he is the legal representative, even the accountant (or at least he intends to do so). In these situations, there is no risk of fraud as all situations will be affected by your decision. In order to change the legal representative, it is necessary to make an amendment to the statutes, which we explain here. Our experience includes business formation, legal representation, tax and accounting services, visa processing and much more. Contact us to find out how you can start your business in Mexico today. However, being a legal representative means more. A legal representative is also responsible for the consequences of the company`s actions. Therefore, the work involves significant risk.
According to the law, at least one session must be held per year. In addition, when assuming such powers, your legal representative may grant and revoke powers of attorney to others. This feature can be beneficial if a shareholder is not available and an obligation must be fulfilled in his absence. Hello, I would like to remove a doubt about the requirements to be the legal representative of a natural person. I will give an example: in a meeting of owners, a person who belongs to the board has the power of an owner, immediately becomes a legal representative or must comply with certain rules? Legal representatives may perform a variety of functions inside and outside the organization they represent. Among the most important are: Natural persons and companies, provided that these companies are represented by a natural person to exercise the function, may act as directors or legal representatives. It is important to note that the powers granted to a legal representative may be limited. Each company has a different management structure, so it is important to review the level of authority that a legal representative is allowed to exercise. A limitation of powers and decision-making should be provided for in the initial power of attorney presented to a notary when a company is incorporated. This document must be accepted by both parties as it is a legally binding document.
It is recommended that shareholders elect a trusted person as their legal representative and someone who aligns with the company`s values and vision. For these reasons, invest time to find a representative who is right for your business. There are other legal cases in which the legal representatives are directly liable (there is automatic liability): in this case, the legal representative before the SII has the following tasks: As explained above, legal representation can be composed of both natural and legal persons, and in all cases, the legal representative acts on behalf of his representative. It therefore obliges them as long as it does not exceed the parameters and conditions of the delegation entrusted to it. The legal representative of the company must be elected by the competent social or administrative body, such as the board of directors or the general meeting. Ultimately, the Company is responsible for any mismanaged communication. Therefore, it is important for your representative to have a clear understanding of Mexican tax and accounting principles for compliance purposes. Does the legal representative have or has the legal right to receive money, salary, fees or commission? What happens if this information is not provided in a letter regarding the acceptance of legal representation at the Chamber of Commerce upon taking office? The same will happen with any business. For this reason, it is necessary to limit the power of the legal representative to consult shareholders on decisions that may seriously affect the sustainability or future of the legal entity. He is appointed by the partners and has the function of being the representative or the visible face. Their appointment is governed by the articles of office or the articles of association of the company. To hold this position, you only need to be of legal age, have a natural person residing in Chile and have the public document designating you as your legal representative.
Now, Mr. Entrepreneur-Entrepreneur, think about it: Who is the representative of your company? Do you remember if the laws set restrictions? If the answer is no, your legal representative can range from signing contracts and hiring employees, to buying homes, co-debtor of other people`s obligations, and even deciding on oil extraction if the purpose of the business allows. The other duties of a legal representative may include holding annual meetings of shareholders and registering agreements or resolutions made at such meetings. In a small and even medium-sized enterprise with few employees, the partners retain control of the most important aspects of the business, but delegate the function of legal representative to the manager or person who manages the operation. This appointment, often motivated by trust or the need to have someone who is always present, is usually a decision that does not weigh its real implications. Any company intending to start an activity must need at least one legal representative. This can be inside or outside Chile, and its function is to root in your decision-making. It is the one who represents the company before third parties, is able to bind it and will, in turn, act legally for the actions of the latter.
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