Joint Stock Company ("Sociedad por Acciones")

A company by shares, also known as a "sociedad por acciones," is a legal entity that can be created with one or more shareholders.

The liability of the shareholders is limited to the amount they have contributed or agreed to contribute.

We recommend this type of company because of its flexibility as well as being able to establish different series of shares in its bylaws.

In the absence of specific provisions in the bylaws, the rules governing corporations apply. The bylaws of a company by shares can be established in a public deed or in a private instrument, as long as the shareholders' signatures are notarized.

The bylaws must include, at a minimum, the following:

• the name of the company, which must include "SpA,"

• the business line of the company, which will always be mercantile

• the capital of the company,

• and the number of shares.

The bylaws must also include information on how the company will be managed and who will provisionally manage the company, it is important to note that the Joint Stock Companies have total freedom to determine their management system and a sole legal representative can act with total or restricted freedom that is completely determined by the shareholders.

A notarized summary of the bylaws must be filed with the Register of Commerce and published on the Official Gazette website within one month of the incorporation of the company.