What is a company or corporation?

A company is a legal entity, created by a contract or agreement of wills intended to govern the rights of contractors, which is held between two or more people and from which emerges a different entity from the partners. Currently, and after the entry into force of the new Civil and Commercial Code of the Republic, it has also been incorporated a new type of company, which is the sole shareholder company (SAU).


It is the essence of a company that profits or benefits obtained from the development of the activity are distributed among the partners or shareholders and to withstand losses, should they occur.


The commercial companies are those that are regulated in the current listed in “General Corporations Act “. By the fact of choosing for any of the different types of companies listed therein, the company will have the character of commercial, and will be governed by said law.


The Civil and Commercial Code of the Nation and our General Corporations Act recognizes companies, as a legal person, which means that it will get their rights and fulfill its obligations regardless of the rights and obligations of the partners or shareholders that compose it.


As a legal entity, it will have it´s own name, equity and address. With this equity and assets it will be responsible for the obligations that it incurs and therefore, in principle, the creditors of the company will not be able to attack the patrimony of the partners to collect the debts that company incurred, nor the creditors of the partner can attack the patrimony of the company to collect debts that are towards the partners.


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