The corporate purpose refers to the activity or activities carried out by a company.
The corporate purpose is very important from several points of view: accounting, tax and business. In fact, if it is not specified correctly in the statutes, its registration in the corresponding official registry may be rejected. In simpler words, the corporate purpose is the purpose for which a company is established. For example, extract oil and sell it.
It is important for accounting purposes, since depending on the economic activity we carry out, we will have accounting standards that may affect us, for example relative to amortization. It is also important at the tax level, in the sense that certain economic activities have different tax treatments. And finally, as a business classification and investment, it is vitally important to know what a company does.
Can several activities be included in the corporate purpose?
Not only is it possible, but it is also what is usually done. In general, including several activities in the corporate purpose allows the company to carry out different activities other than the main one. In this sense, it allows you greater flexibility when exercising your economic activity.
So that a company can have as a corporate purpose, for example, the marketing, import and export of textile products. Meanwhile, others could include only the export of textile products. In the first case, the object of the company is broader.
Example of corporate purpose
Continuing with the previous example, although we are not going to mention the name of the company, we are going to present a real example of the corporate purpose of a large company.
It is divided into 7 sections, which are:
- Manufacture, marketing, import, export and wholesale of all kinds of textiles, yarns, fabrics, fabrics and products made for clothing. Also included with respect to the above, those related to the home and cosmetics.
- Participation in other civil or commercial companies, whether these are public limited companies or limited liability companies, of Mexican or foreign nationality.
- Administration, management and operations of the aforementioned shares.
- Provision of services related to the administration, management or operations of companies.
- Preparation of all kinds of market studies and industrial design projects.
- Ownership, exploitation or transfer of designs of industrial or intellectual property of any kind.
- Acquisition and disposal of real estate of any kind.
As we can see, a company with a very broad and flexible corporate purpose that allows it to carry out different activities. Despite, yes, that its main activity has to do with the first section: textile sector.