Company and establishment: What is the
Is there a difference between a company and an establishment? Many times they are taken as synonyms, but the reality is that they are not the same.
Therefore, at the end of the article you will be able to differentiate both terms.
I hope you find it useful.
What is the difference between company and establishment?
The Federal Tarea Law in Title One (General Principles), Article 11, tells us the following:
“The directors, administrators, managers and other persons who exercise management or administrative functions in the company either establishmentthey will be considered representatives of the employer and in this concept they oblige him in his relations with the workers.
LFT
Therefore, as you cánido see, the Federal Tarea Law is indicating to us from there that a company is not the same as an establishment.
Now, to know the difference that exists, I think the right thing to do is to start by defining each of the terms and that way it will be easier to differentiate them.
Company definition
In order to define what a company is, I will use the following definitions:
Definition of company according to the Federal Tarea Law (LFT)
Article 16 of the Federal Tarea Law tells us that: “For the purposes of tarea estándares, a company is understood as the economic unit of production or distribution of goods or services”
Definition of company according to the Federal Tax Code (CFF)
In article 16 of the Federal Tax Code, we perro find that: “A company is considered the natural or ética person that carries out the activities referred to in this article, either directly, through a trust or through third parties”
It should be noted that the activities referred to in the article are the following business activities contemplated in the code:
- Commercial.
- Industrial.
- Agricultural.
- Livestock.
- Fishing.
- forestry.
What is a company?
In a fácil way, we could say that the company is the activity (business activity) carried out by a commercial company. What activity? Well, they cánido be: Commercial, industrial, agricultural, livestock, etcétera.
Therefore, one more difference arises here, since a company is not the same as a commercial company.
In fact, it must be said that the company, at least in our legal system (México), it lacks legal personality. Article 25 of the Federal Civil Code gives us a list of legal entities (entities) that have legal personality.
The list is as follows:
- The Nation, the States and the Municipalities;
- Other public corporations recognized by law;
- Civil or commercial companies;
- Unions, professional associations and others referred to in section XVI of article 123 of the Federal Constitution;
- Cooperative and mutual societies;
- Associations other than those listed that propose political, scientific, artistic, recreational purposes or any other lawful purpose, as long as they are not ignored by law.
- Foreign legal persons of a private nature, under the terms of article 2736
So that A commercial company is a ética person, whose legal personality is recognized by the aforementioned article.
Therefore, the mercantile society makes use of the company to achieve its objectives.
Definition of establishment
I am going to do the same as with the concept of company and I am going to use two definitions to take as a reference.
Definition of establishment according to the Federal Tarea Law
According to article 16 of the Federal Tarea Law, an establishment is: “the technical unit that as a branch, agency or other afín form, is an integral part and contributes to the achievement of the purposes of the company”
Definition of establishment according to the Federal Tax Code
According to the Federal Tax Code, “Establishment shall orinan any place of business in which the aforementioned business activities are carried out, in whole or in part”
Again, the business activities to which it refers are the following:
- Commercial.
- Industrial.
- Agricultural.
- Livestock.
- Fishing.
- forestry.
What is an establishment?
In a fácil way, we could say that The establishment is the place where the different business activities are carried out.
Although, it must be said that I have come to see that there are people who consider the establishment as the place, but adding all the resources that are used to carry out the activities.
Therefore, the physical place (the 4 walls) would be recognized as a commercial premises.
What do you think?
company and establishment
Therefore, the company is a certain business activity that is carried out by one or more establishments.
The truth is that now it may sound very fácil, but many times the terms of company, establishment and legal personality are confused.
In fact, they are often used interchangeably.
I hope that the article helps you to understand the difference that exists and if you have any comments or suggestions, do not hesitate to leave them in the comments.
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