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The IGJ will allow multiple purpose companies, what are the exceptions?

Since February a company that is dedicated to sell carsFor example, you will be able to open a supermarket or engage in the exploitation of a field, or provide internet services all under the same company name.

This is how it is arranged a new resolution from the General Inspection of Justice (IGJ) which will allow from now on the constitution of multiple purpose companies. Based on this, business partners who wish to expand into another area that is not the main objective may do so with the same company.

In that way, It prevents the owners of one company from being forced to open others to be able to develop other businesses that are not linked to the first.

The new modality also eliminates minimum capital requirements to develop companies with a specific corporate purpose.

By eliminating the greater requirement for social capital in relation to the type of activity, The requirement that Limited Liability Companies (SRL), a format widely used among SMEs, they must have an minimum capital equivalent to 30% of the capital required for a Public Limited Company (SA)a format that fits best among the large ones.

No deadline for the corporate purpose

The new regulatory authorities also They repealed the obligation that companies have to be established for at least 30 years.

“Forcing individuals who make the decision to operate various businesses to have to establish more than one company, imposes on them multiply contributions, foundational and operational costs, generating an appreciable tax on assets,” the IGJ maintains when justifying the decision.

The resolution indicates the previous situation prevented “the surpluses obtained in The exploitation of one of the categories of legal acts included in the corporate purpose can be used immediately in the exploitation of another item.forcing the transfer of resources inter-corporately – all of this without there being a well-founded reason in a legal norm that justifies it-”.

The control body also justifies that “although in many Latin American countries the theory of the specialty of the corporate purpose and the consequent corollary of the ultra vires thesis is still preserved today, “American corporate regulations – which can be consulted as an example – have unanimously abolished both doctrines.”

The standard allows that the corporate purpose of a firm can be made up of a set of categories while at the same time It will not be required that they be related. Thus, someone who has a company that sells cars can also open a supermarket with the same business name.

According to tradition, the sole purpose of a company was intended to protect minority partners to avoid that when a company expands into other areas, they impose the need to integrate capital into the firm, forcing them to sell their participation.

Financial sector, the exception

The measure of The IGJ presents an exception by law, which is banks and insurance companies or insurance producers, who must remain only within their field depending on the nature of their businesses and are linked to the management and custody of their clients’ funds.

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