Mercantile Companies

The commercial enterprise is constituted by a coordinated set of material elements and incorporeal values, with the purpose of offering goods or services to the public, for profit and in a systematic manner. Furthermore, it does not lose its character by the variation of its elements, nor by lack of permanent establishment or seat. These premises are the starting point of our Code of Commerce, precisely to determine the scope and strength of its existence; therefore, its understanding and interpretation is very relevant. Notwithstanding its nature as a movable property, the transfer and encumbrances of its real estate elements must be governed by the rules of common law, precisely because it transcends its legal effects before third parties.



Any transaction involving the concept of a company, if part of its essential elements are not excluded, includes: the clientele and commercial fame, the commercial name and commercial signs, leasing contracts, furniture and machinery, labor liabilities, merchandise, credits and other similar goods and values, including the establishment, if any; therefore the relevance of having clarity in its context.



A company responds to its own dynamics, precisely because it depends on its commercial or business line to achieve its results; for this reason it is necessary for potential buyers to evaluate their projections in terms of repaying their investment in the estimated terms and being able to grow against the competition, even more so with the technological advances presented by the market and its environment, since these are variables that must be monitored with due frequency.



We must be clear and precise when we talk about the concept of commercial companies, since its connotation is formal and integral for business matters, even more so when the legal norms of our country seek the speed of a sustainable development and to comply with the existing legal order.



Considering the scope of what constitutes a commercial company, we must take into consideration that, prior to its acquisition, a due diligence (due diligence process) would be recommended, precisely to know the details of the same, its integral organization, administrative, financial, legal and fiscal operation to evaluate its contingencies and thus have the certainty of the investment of potential buyers; for this, the advice of a legal firm such as ours is necessary.