Bisbee daily review., 1908-11-05
LEeALlziNe FOREIGN
CORPORATIONS IN MEXICO.

quote an editoriai uou me heAhcsh
Herald of recent date. It is as fol-
lows:
The present mining law of Mexico
provides that mining companies in
general are subject TO the provisions
OF the code of commerce.
Art. "a of that code lays down the
formaIities to which foreign compan-
les, desiring TO do business in Mexico,
are subject. as follows:
Foreign corporations which desire
to become established or TO create
branches in the republic shall present
and cause to be recorded in the Com
merciai Registry in addition to pro
tocolized copy of their statutes, con
tracts and other documents relating
to their incorporation. an inventory,
or their latest balance sheet, il they
have any, as well as certificate prov
ing that they have been organized and
| authorized to do business under the
laws of their respective countries,
said certificate being issued by the
minister of the republic accredited to
each country or. if there be no minis
ter, by the Mexican consul,
The documents usually required
under this article ere threefold. viz;
A certified copy of the charter. certi-
fed copy of the bylaws and the GER
tifcate of legal interpretations issued
by the Mexican minister or consul.
These documents. when arriving in
Mexico, are placed in the hands of a
notary public who, thereupon, pre-
sents them 20 one II the civil judges,
with an application fer the judges au-
thorization to ''protocolize" them. The
Judge, IL he finds the papers in order.
and the translatioas, on the faith of
an experts declaration, seem accur-
ate, hands down an order or auto"
for the protocolization of the docu-
ments. which, for that purpose. are
returned to the notary. The notary
makes a comprehensive summary OF
the contents of the documents and en-
tiers it in his protocol adding the
original documents themselves TO the
appendix of said protocol" He is
bound, under stringent penalties. to
to pay in, at the stamp office, the
tax imposed by law CT the operation;
and he then proceeds to make a tran
script OF the document or their trans
lation, certifying to its exact conform
ity with the originals. This transcript
is called a "testimonio," and when
made out and duly attested it is pre-
sented at the Commercial Registry tor
| inscription and annexation. The ties
timonio" is then delivered TO the rep
resentative of the company in Mexico.
TO be held by him as evidence of the
legal existence of s,Ich company in
the republic.
The chief expense connected with
this formality is the stamp tax on cap,
ital which is one per mill for the
first $500, 900; O.50 per mil on the sec
ond 100000; and 0.1O per mill on
the capital in excess of $1,0OO,OOO. ii
is true that, under certain conditions
foreign companies are entitled to q
reduction Of one-haif of the stamp tax
on that part of their capital which is
in excess of 100000. but It is not
always easy to comfy with the re-
quirements laid down by Art. 1872 Of
the stamp law in order to obtain thi.
franchise.
The amounts mentioned in the fore
going paragraph arc. of course, II
Mexican currency ans capital express
: ed in foreign currepcIes must, for thu
assessment Of the tax, be converted
into Mexican currfn cy according Il
the table of equivalents contained il
. the decree of June 9Th, 1906.
In addition to the requirements o
0 Art "a of the code of commerce. Art
: PCS of the same code lays down tina
[ foreign joint stock companies opel
ating Ia Mexico must publish a yeaI
D Iy balance sheet, together with tn
{ personnel of their management.
= II the conditions laid down in Arts
: % and 265 are not complied with
: the persons who contract in the nam
of foreign company in the reput
lie become personally liable for tn
: obligations assumed on behalf of sal
q company This, in addition to tn
penalizatioDs laid dawn by Arts. =
and 81 of the code for non-regIstratio