Author: Lic. Rafael Giménez Camacho
Businesses evolve, and companies flow with their growth toward new business opportunities, whether through the expansion of their territorial distribution channels to other states, countries, or continents, or because the natural development in their market offers new opportunities to broaden the catalog of products or services they offer, which complement the main business that, through its success and positioning, has opened up other business opportunities.
Holding companies represent a strategy for expansion and consolidation in the business world that, when implemented properly, can generate significant growth and enhance operational efficiency. However, their implementation must be methodical and well-planned. The objective is to ensure a robust legal and operational framework, both internally and externally, to maintain certainty and organization.
Internally, it is essential to establish efficient and clear governing bodies within the companies that can manage the complexities inherent to holding companies and ensure smooth communication and decision-making.
Externally, a holding company can take advantage of benefits such as diversification, asset protection, and tax optimization, among others, but only if the structure is managed strategically.
Therefore, the importance of strong management and a long-term vision cannot be underestimated in this type of planning. A well-implemented holding structure can serve as a vehicle for growth and consolidation, but it requires careful planning and expert management to reach its full potential.
The expansion of businesses may involve the introduction of new partners who participate in one or several sectors of the company with varying stakes in each. Holding structures are versatile enough to adapt the company to investment needs.
The holding scheme is a valuable resource and is often the most common structure applied for foreign companies looking to do business in Mexico. A foreign company that establishes a Mexican corporation will enjoy all the advantages offered by international treaties to market products to other countries and gain a presence in Latin America without tariffs.
The reasons for implementing a holding company can vary, but they all converge on the need for asset protection of the main business and organization to ensure compliance with corporate obligations and the exercise of the corporate rights of partners or shareholders, as well as, of course, the Board of Directors.
Asset Protection
The reason for implementing a holding structure is the separation of businesses to avoid
