Categoría: News and Blogs

Publicado en

ARCHITECTURAL TRENDS FOR 2024

By Jessica Hernández Sales Assistant at SILMÉXICO

The year 2024 is just around the corner, people and their needs will not be the same as those of the year that is about to end, also, the advancement of technology and weather conditions, as well as the economy will present different characteristics. It is exactly the same in the field of architecture and construction, which seek to adapt year after year to these changes. That is why it is necessary to know about the trends for the coming year in the architectural field. 

Undoubtedly, architecture and construction will be focused on the welfare of people and low environmental impact for the care of the environment, following this line some of the trends are as follows:

Micro living and greentecture:

Microliving is based on the idea that the square footage of the home does not define its value and functionality, its central location is what characterizes this type of housing, which is why especially young travelers, as well as investors, are those who prefer it. Greentecture is complemented by micro-living with a sustainable approach to urbanism, bioclimatic criteria, and self-sufficiency.

Biophilic design

A trend that incorporates nature in interior design will also be present in 2024. This will focus on the design of interior spaces that give the feeling of being outdoors, nature-inspired lighting, and inclusion of plants. To learn more about biophilic architecture read our blog BIOPHILIC ARCHITECTURE: THE NEW TREND IN REAL ESTATE DEVELOPMENTS IN OAXACA.

Industrial Style

It is defined by asymmetrical shapes in construction, both in residential buildings and in other urban infrastructures. It is characterized by the combination of iron, wood, aluminum, and even recycled plastic, which reduces construction costs.

Domotic architecture

Technology will be present in buildings and homes since alternatives to control temperature, light, or building security are increasingly in demand. This type of architecture is an excellent economic and environmental option, since in addition to making certain activities more efficient and reducing energy consumption, which has a positive impact on bills, it is also the result of raising awareness of responsible consumption.

Floors, walls, and more

These parts of the buildings will be protagonists of architectural design in 2024, betting on ecological options, as well as designs in marble, imitation wood, clay, coatings in textures and colors of the new minimalism, which now goes beyond black and white, or polished cement. 

Kitchens will also be given greater importance, their design will focus on spaciousness and connection with the dining room and living room, as well as the installation of a central island and breakfast bars.

If you are interested in receiving advice on the design of your new project, write to info@silmexico.com and receive personalized advice on the development of your new real estate project.

Publicado en

IN CASE OF DECEASE, WHAT WOULD HAPPEN WITH MY PROPERTIES IN MEXICO BEING FOREIGNER?

By: Madison Ashley
Legal Intern, SILMEXICO
A Bridgewater State University student, Legal Intern, and currently a member of the Research Center of SIL MEXICO.

What is patrimony?

Patrimony is all the things bought and owned in a person’s life. It is a collection of all possessions. Patrimony can be in the form of real estate, vehicles, clothing, jewelry, and several others. When a person dies, their possessions need to be determined who or where they will go. This is a succession that can either be determined by a will or a person deemed close to the deceased. There are ways to protect patrimony and allocate the possessions accordingly. For example, wills are the best way to detail where all belongings will go upon the death of the owner. This way, the possessions are not up for debate, and it makes the probate process faster.

Breakdown of inheritance

Inheritance is decided by a specific principle. The relative that is deemed the ‘closest’ is first in line to the inheritance. There are numerous examples of exceptions: 

    • “Where there are surviving children of the deceased but no surviving spouse: the estate is divided among the children in equal portions.
    • Where the deceased has a surviving spouse and surviving siblings: two-thirds of the estate is received by the surviving spouse, and the other third is divided in equal parts among the siblings. 
    • Where the deceased has surviving siblings only: the siblings inherit in equal portions.
    • No closer relatives survive: the closest relatives up to the fourth grade inherit in equal portions.” (Pavon, 2017)

This is another example of why wills are helpful. If the breakdown of inheritance is specified in the will, the wishes of the deceased can be honored, instead of acted upon what is standard.

What happens if I die, and I don’t have a protected vehicle? And if I do?

When you die, any non-land assets will be passed through an estate. This procession goes through the same process as any other patrimony. Additionally, if the car is unprotected or has a loan, it will become part of the estate of the deceased. The assets from the patrimony can be used to pay off the debt of the loan as well.

What is the best option?

The best option for foreigners who own property in Mexico, or have other assets in Mexico, is to create a Mexican will. Even though they could be a resident of another country, having a will for the assets per country will save lots of time and money. Without a Mexican will, the foreign will is going to have to go through a double-probate process. This is really expensive and can take years for Mexico to recognize. Instead, the better option is to have a Mexican will that handles Mexican assets, to avoid double probate expenses.  

To obtain a Mexican will there are three steps. First, an official court-approved translator must translate the will into Spanish. It also must be apostilled in the country where it is. Lastly, since Mexico does not have survivor rights, the surviving spouse might not automatically inherit the property. Therefore, it is important to outline specificities accurately (Pavon, 2017). Another important piece of information is that “property held through a bank trust is not included or referred to in a will made in Mexico. For other property including real estate that is not held within a bank trust, a Mexican will identifies the beneficiaries and specific legatees and appoints an executor who administers the property until it is transferred to the heirs and assist the notary with the process.” (Pavon, 2017). 

Overall, the best option is to obtain a Mexican will for any assets in Mexico.

References

Pavon, M. (2017, September 14). Who Will Inherit Your Property in Mexico? MEXLAW. https://mexlaw.com/will-inherit-property-mexico/

Publicado en

WHAT IS THE ESCROW CONTRACT?, WHAT IS IT FOR?

By Juan Luis Santiago Law student, Junior Lawyer in the Legal Department, and currently part of the Real Estate Legal Research Center. 

Given the current boom in the real estate sector, it has become necessary to contemplate different protection alternatives or to guarantee transactions concerning property rights, such as the sale and acquisition of real estate.

This is where the “Escrow Contract” comes in as one of the most efficient means of guarantee in the real estate world.

Who is involved in the escrow contract, at the moment of carrying out a real estate transaction? 

The parties in this type of contract are:

    • The Seller. – Holder of the property, with the necessary legal capacity to dispose of the real estate object of the operation.
    • The Buyer. – A person with sufficient legal and economic capacity to acquire the real estate object of the transaction.
    • The Escrow Agent. – Natural or Moral Person (through the representative), that will act as an intermediary concerning the economic resources within the real estate operation.

What is the Escrow Contract?

To conceptualize and give a function to this type of contract, we must start from the premise that the “Escrow” within the Mexican legislation is not contemplated, that is to say, it is an atypical contract, not regulated, which does not require any formality of structure, so that different jurists within the field of contract law, have defined this, as the agreement of wills made expressly, by which the parties (Seller and Buyer) entrust to an intermediary “Escrow Agent” each one of the economic resources coming from the real estate, to act as an impartial guarantor, who will retain such resources until the contractual obligations of the purchase and sale expressed by the parties are fulfilled.

And, if it is not regulated, what legal certainty does it offer?

Although it is considered an atypical contract, this does not mean that it is somehow illegal or inefficient (regarding its legal validity), on the contrary, it means that it does not require any formality more than those of any other type of contract regulated by law, so the will of the parties will prevail before any instance, and doing it expressly will be enough to give it its certainty.

That is why SILMÉXICO offers this type of contract to its buyers and sellers belonging to its portfolio of collaborators so that each one of their transactions is carried out most efficiently without at any time harming or jeopardizing the property rights of the parties. 

Publicado en

SAFETY MEASURES IN MEXICO FOR CONSTRUCTION

Tuesday, November 7, 2023 By Jessica Hernández Sales Assistant at SILMÉXICO  

The construction sector is considered one of the most risky in Mexico; in the last ten years alone, more than 31,000 accidents have been registered in this industry alone. 

According to data from the Mexican Social Security Institute, from 2012 to 2021 there were approximately 1,846 deaths of construction workers. 

Some of the most common occupational hazards are:

    • Falls to the same level. 
    • Blows and cuts.
    • Falls to different levels. 
    • Fall of objects by collapse. 
    • Entrapment by or between objects. 
    • Stepping on objects. 
    • Collisions against moving objects. 
    • Projection of particles. 
    • Burial.
    • Collisions. 
    • Risk of fire and explosion. 
    • Electrical risk.

To avoid as much as possible the incidence of these and other occupational hazards in construction, basic safety standards have been created and must be strictly followed to avoid minor accidents and, of course, extraordinary situations such as fatalities. Developers or persons in charge of construction sites must ensure that they provide their workers with the necessary conditions to safeguard their physical integrity. These conditions, in addition to including all types of employees entering the construction site, must also cover visitors. 

These measures are divided into 4:

1. Safety and Hygiene Measures for Workers

In the work areas some activities imply a lack of hygiene, so workers must recognize, evaluate, and control the agents to which they are exposed to prevent discomfort or illness. It is essential to have drinking water for hand washing, a specific place to store tools and equipment, a container for waste, a bathroom, a clean place for food consumption, and a first aid kit.

2. Safety and Hygiene Measures in Work Areas

Safety and hygiene measures must be promoted and implemented to help guarantee the safe performance of work at the site, such as the use, inspection, cleaning, and maintenance of tools and construction equipment within the work areas, which requires delimiting habitable areas of the site, using basic protective equipment, not accumulating debris, clearing evacuation routes, keeping circulations clear, and storing tools and equipment in a specific place.

3. Basic and Specific Personal Safety Equipment

Personal safety equipment consists of those accessories or elements that are used on-site to protect workers during tasks that represent a greater risk and can damage their health and physical integrity. 

Basic equipment: helmet, vest, work clothes, and boots. 

Equipment for specific jobs (work at heights, use of tools and electrical equipment, and machinery handling): goggles, face shields, respirator, harness, earplugs, gloves, and overalls.

4. Previsions when carrying out Construction Work

Safety measures for the performance of specific jobs help prevent and reduce the risks to which all participants in the construction site are exposed: 

Use of tools and equipment: set aside a special area for each activity, and replace worn cutting elements. 

Working at heights: verify that safety equipment is in good condition, delimit the work area, and if scaffolding is used, verify that it is in good condition. 

Use of chemical substances: do not smoke near the storage of substances, avoid spills, and store them in a safe place.

In Mexico, these measures are established by the Official Mexican Standard NOM-031-STPS-2011, and their objective is to prevent the risks to which construction workers are exposed, in addition to ensuring an adequate work environment, the correct monitoring of the measures will ensure that the work is completed on time.

Are you looking for construction advice? Contact us to guide you through: 

info@silmexico.com. 

References

Publicado en

What types of properties are there in Mexico?

Monday, November 6, 2023  

By Madison Ashley, Bridgewater State University student and legal Intern, she is currently a member of the Research Center of SIL MEXICO, and Thorvald Pazos Casas – Law degree from the Universidad Regional del Sureste, postulant attorney in criminal, civil, agrarian, and tax matters, and currently a research attorney and part of the Research Center of SILMEXICO.

In Mexico, throughout its history and its intricate relationship with the land, there has been a long struggle for the recognition and equitable distribution of this right, a battle that has been fought since the times of Independence and the Mexican Revolution. As a result of this struggle, land ownership is a protected and regulated right in the Political Constitution of the United Mexican States, which grants it a special status and treatment.

The legal system in Mexico is based on the Roman-Germanic system, which implies the existence of a written law and doctrine as a source of law, being the Mexican Constitution the cornerstone of this system. Article 27 of the Constitution, which is found in the dogmatic section of the Constitution, recognizes the right to property as fundamental. The aforementioned provision recognizes that there is public, private, and social property in the national territory.

Article 27 of the Mexican Constitution states that “ownership of the lands and waters within the boundaries of the national territory is vested originally in the nation, which has had, and has the right to transfer title thereof to private persons thereby constituting private property” (Kelly, 1994). This means Mexico holds the legal basis of the land and its control of what constitutes private ownership and private possession.

From the foregoing, it is worth mentioning that the main regulation of property is found in the Mexican Constitution, and is supported by secondary laws for its legal regulation and tenure. Such as, in the case of private property, the Federal Civil Code or that of the states; for social property, there is the Agrarian Law; and for public property, it is based on the National Property Law.

The Kinds of Property in Mexico

There are three types of property in Mexico: private, social, and public.

Private

Refers to property that originated from the original ownership of the nation and was transferred to private individuals or entities. It is the right of individuals or legal entities to enjoy and dispose of their property, subject to the restrictions established by law. The Federal Government has the power to expropriate private properties that are considered notable due to their characteristics and manifestations, following the provisions of the law.

Agrarian

Also known as social, belongs to various agrarian groups and is subdivided into two categories: ejido property and communal property. Since 1992, with the enactment of the Agrarian Law, voluntary transition to full ownership is allowed, which means that through a certification process, it can be converted into private property and, therefore, be susceptible to sale. The key distinction in social property is based on the origin of land tenure. The ejido arose as a result of the allocation of land by the State to a group of peasants who lacked land and needed it for their subsistence. On the other hand, the agrarian community has its origin in the recognition by the State of land that belonged to a group of peasants since ancient times or in the restitution of land if they had been dispossessed of it in the past.

This difference is fundamental since the ejido is created as a measure to distribute land to those who need it, while the agrarian community recognizes the historical rights of a group of peasants over the land they have occupied and worked for generations. The two concepts reflect different approaches to land policy and its history in Mexico.

Public

Refers to the buildings and territory under the jurisdiction of the entities and agencies of the different levels of government (Federal, State, and Municipal). These properties are subject to regulations established by the General Law of National Assets in the federal government and by the laws of patrimony or assets of the federal entities. Access to and use of these public spaces are restricted and regulated, which means that to use a public space it is necessary to obtain a concession, and private individuals can only access public property through these concessions.

Several types of taxes involve property in Mexico. These include acquisition tax, annual property tax, rental income tax, value-added tax, capital gains tax, and income tax. Acquisition tax is paid for any property that is purchased; the tax levels differ, but it can range anywhere from 2% up to 4.5% of the value of the property at the time of purchase (Ortega, 2023).

References

  • History of the National Agrarian Registry of Mexico. (2022, April 19). Mexicanist. https://www.mexicanist.com/l/history-of-the-national-agrarian-registry-of- mexico/
  • Kelly, J. (1994). Article 27 and Mexican Land Reform: The Legacy of Zapata’ s Dream ARTICLE 27 AND MEXICAN LAND REFORM: THE LEGACY OF ZAPATA’S DREAM*.
    https://scholarship.law.nd.edu/cgi/viewcontent.cgi?article=1693&context=law_faculty_scholarship:~:text=Article%2027%20of%2
  • 0the%20Mexican%20Constitution%20states%20that%20%22%5Bo%5D
  • Ortega, O. (2023, April 17). Tax Implications of Owning Property in Mexico [2023 Policies]. RivieraMayaCozy.com – Your Place for Best Real Estate Deals in Rivera Maya.
    https://rivieramayacozy.com/tax-implications-owning-property-mexico/
  • Real Estate Law | Mexico | Global Corporate Real Estate Guide | Baker McKenzie-Resource Hub.(n.d.).
    Resourcehub.bakermckenzie.com.
    Retrieved
    November 3, 2023,
    from https://resourcehub.bakermckenzie.com/en/resources/global-corporate-real-estate-guide/latin-america/mexico/topics/real-estate-law:~:text=Land%20i tself%20in%20Mexico%20is
Publicado en

TYPES OF SCAFFOLDING

Thursday, November 2, 2023 By Jessica Hernández Sales Assistant  

Scaffolds are structures that are used in construction sites as a tool to reach certain heights or areas of difficult access to perform the necessary work. In addition to fulfilling this function, scaffolding must be correctly assembled to ensure the protection of the person carrying out the work, otherwise, this may cause falls of people or materials, as well as collapses. They are platforms with stable surfaces and are available in different materials and sizes.

Trestle scaffolding

It is the simplest scaffolding that exists, characterized by being A-shaped. It is used in constructions that do not exceed 4 meters in height due to the simplicity of its structure. It is used as an auxiliary for simple tasks such as painting tiny houses.

Cross brace scaffolding

This is the standard scaffolding, also known as scissor scaffolding, it is very easy to transport and low cost. It is not approved for outdoor use, so it is more commonly used indoors.

European scaffolding

It is the type of approved scaffolding, besides being modern, it complies with all current European safety standards. It has non-slip platforms, trapdoor and ladder to facilitate access to each of the different levels or heights of the scaffolding. Its stability is ensured by assembled diagonal and horizontal bars.

Suspended scaffolding

These are mobile structures suspended from the ceiling, roof, or beam. They are ideally used to perform work from 20 meters in height and allow the user to change levels. It is commonly seen in window cleaning jobs in large buildings.

Multidirectional scaffolding

They are resistant and versatile. Their main characteristic is that they are capable of forming frames that adapt to any position and shape, even curved. They allow work levels to be varied every 0.50 meters while maintaining all safety elements. Their use ranges from simple projects to the most complex and industrial uses.

Mobile scaffolding

They are very stable and efficient for working in smooth and flat environments. They are composed of simple, manageable, and light pieces that facilitate their assembly, disassembly, and displacement.

Self-erecting platform scaffolding

Systems whose platform operates electrically on 1 or 2 masts. It has a control panel and an overload locking system.

 

It is important to choose the type of scaffolding according to the task to be performed, this will result in faster and more efficient work. Also, you will protect the lives of the workers and those who pass around the work site. At SILMÉXICO we advise you about the ideal type of scaffolding for your new development. Contact us at info@silmexico.com to receive advice on your construction process.

Publicado en

CERTIFICATE OF FREEDOM OF LIEN

Monday, October 30, 2023 By Jessica Hernández Sales Assistant  

The certificate of freedom of encumbrance is the document that guarantees the legal certainty that the property purchased or to be purchased does not have any debts or legal situations in relation to the Ministry of Finance or financing institutions. 

In addition to other documentation, this is one of the most important documents requested when promoting a property for sale. This document grants the certainty that the property can be sold and given freely to the new owner, without it being a guarantee for any loan, or seized.

Where is the Certificate of Freedom of Lien processed?

In Oaxaca, this certificate is issued by the Public Registry of Property and Commerce. To obtain it, you must first fill out an application form, which includes information such as: 

    • Data of the applicant
    • Name of the owner or registrant
    • Name of the property
    • Complete location: measurements, boundaries, surface, and registry antecedent.
    • Name, signature of the applicant, and date of presentation

Likewise, the payment corresponding to the antecedent of the inscription before the Public Registry of Property and Commerce must be made, this varies according to the state in which it is processed. 

The approximate time to have it is five to eight working days in regular conditions, although the process can be accelerated by paying an extra fee.

Do you have doubts about this or other legal procedures related to the purchase and sale of real estate? Come to SILMÉXICO to receive advice from our legal team.

Publicado en

CONSTRUCTION MACHINERY

Monday, Wednesday, October 25, 2023 By Jessica Hernández Sales Assistant at SILMÉXICO  

In the construction industry, different equipment is used during the beginning, in the middle, and at the end of the work to facilitate the work. Having the right tools and machinery will ensure the efficiency of the processes in the different stages of construction, in addition to preventing the physical integrity of the workers from being put at risk. Whether you are looking for machinery to buy or rent for your project, you should know their types and functions, and based on that choose the ones that fit your needs. In the following blog, we share with you about construction machinery and its types.

The size and characteristics of the machines vary according to the activity you are looking for them to perform, among which we find:

    • Excavation of land in which the settlement of the foundations of various structures will be made.
    • Soil displacement to shape the land on which roads or highways will be set.
    • Loading and unloading of construction material.
    • Mining activities.
    • Separating some part of the soil layer with the objective of transforming the terrain according to the project to be executed.
    • Now, machinery owes its classification to its different sizes, which is why it is divided into heavy, semi-heavy, and light.

Heavy Machinery

As their name indicates, these are of a great size and weight, all of them must be operated by a person with high knowledge in their handling, and following the corresponding security norms. In this category we can find:

Bulldozer

It has a powerful front shovel and is mounted on rails or tracks. This machinery is mainly used for heavy-duty work such as excavation, land leveling, soil piling, etc.

Excavator

This is the most important heavy machinery used in the construction industry. Their main use is excavation; however, they can also be used for other purposes, such as demolition, river dredging, etc.

Mini excavator

It is a small industrial equipment. It is their size that makes them practical and useful for a variety of jobs. It helps to prepare the ground, excavate, and remove debris in hard-to-reach places. Even on uneven terrain. The mini excavator is a versatile machine that is also used on farms, in confined environments; but it is especially useful in civil construction because of its compact size and ease of transport.

Backhoe

It has a bucket at the front and a digging arm at the rear, which allows them to perform a variety of tasks.

Examples include excavation, demolition, material moving, asphalt removal, and road paving, among others.

Motor graders

It is a self-propelled construction machine with wheels. It incorporates an adjustable blade located between the front and rear axles to cut, move or flatten the ground.

Skid steer loader

Also known as a skid-steer loader, it is an extremely compact type of tractor. It has a loader arm attached to its front end.

Also, unlike most of the above machines, the skid steer loader is light, small and very agile.

Articulated trucks

These are motor vehicles consisting of two or more interdependent structures connected by a hydraulically assisted axle. This allows the truck to maintain its connection between the tractor and the trailer. The articulated truck is mainly used to transport construction materials such as sand, cement blocks, rubble, etc., in quantities that exceed the capacities of a traditional truck and in terrain where other vehicles would get stuck.

Semi-heavy machinery

Unlike the previous ones, these have a smaller dimension, they are used to remove a smaller amount of soil compared to heavy machines. In turn, they can be used to excavate land that is not too deep or to load medium-weight elements.

They include the following:

    • Construction dumpers
    • Small excavators
    • Small cranes

Light machinery

These are of much smaller size and are used to perform tasks that do not require so much demand, are subdivided into pneumatic that operate on the basis of compressed air and electricity, some examples are:

    • Water pumps
    • Compressors
    • Vibrating machines
    • Steel cutters

Are you about to start your project and have doubts about the materials and equipment you need? At SILMÉXICO our expert construction team will guide you from start to finish. For more information write to info@silmexico.com and one of our specialists will contact you.

Publicado en

Canada-Corporation-What-Why-How

Monday, October 23, 2023 By Shannon Lam- Legal Assistant at SILMEXICO

Canada offers a favorable business environment for entrepreneurs and foreign investors. When starting a business in Canada, it is essential to choose the right business structure that aligns with your goals, taxation preferences, and potential liability concerns. In this guide, we will explore the main types of companies that can be created in Canada, their characteristics, advantages, disadvantages, tax implications, and approximate costs.

I. SOLE PROPRIETORSHIP

A sole proprietorship is the simplest form of business structure, owned and operated by a single individual. It requires no formal registration, making it the easiest and most cost-effective option to start a business in Canada.

 ADVANTAGES

Sole proprietorships are easy and quick to set up with minimal paperwork and you would have direct control over business decisions. Additionally, the business income is taxed as personal income, potentially resulting in lower tax rates. And finally, there are fewer regulatory and reporting requirements.

DISADVANTAGES

There is unlimited personal liability; the owner is personally responsible for all business debts and liabilities. There is also limited access to capital, as the business relies on the owner’s resources.

TAX ADVANTAGES

The business income is taxed at the individual’s marginal tax rate, allowing for potential tax savings in certain scenarios.

APPROXIMATE COSTS

The cost of creating a sole proprietorship is minimal, usually consisting of business registration fees (varies by province) and any necessary business licenses.

II. PARTNERSHIP

A partnership is formed when two or more individuals or entities agree to carry on a business together, sharing profits and losses based on their agreed-upon partnership agreement.

ADVANTAGES

It’s relatively simple and cost-effective to set up compared to corporations. There are shared responsibilities and resources among partners.

DISADVANTAGES

There is unlimited personal liability for each partner. And partners may face conflicts if there is a lack of clarity in the partnership agreement.

TAX ADVANTAGES

It has pass-through taxation which allows partners to report business income on their individual tax returns, potentially leading to lower overall tax rates.

APPROXIMATE COSTS

The cost of creating a partnership typically involves registration fees and legal expenses to draft a partnership agreement, which can vary depending on the complexity of the arrangement.

III. CORPORATION

A corporation is a legal entity that exists separately from its owners (shareholders). It is formed by incorporating under federal or provincial laws.

ADVANTAGES

It has limited liability for shareholders, as their personal assets are generally protected from the company’s debts and liabilities. It’s also easier access to capital through the issuance of shares.

And it has a perpetual existence, even if shareholders change.

DISADVANTAGES

Unfortunately, it is more complex and costly to set up and maintain compared to other business structures. There is also increased regulatory and reporting requirements. They are subject to double taxation: Corporations are subject to corporate income tax, and shareholders also pay personal income tax on dividends received.

TAX ADVANTAGES

The ability to retain earnings within the corporation at a lower tax rate, known as the small business tax rate, can provide tax deferral benefits. Some tax planning opportunities for business owners to minimize overall tax liabilities.

APPROXIMATE COSTS

The cost of incorporating a corporation includes registration fees, legal fees for drafting the articles of incorporation, and ongoing annual maintenance costs.

IV. LIMITED LIABILITY PARTNERSHIP (LLP)

An LLP is a hybrid business structure that combines elements of a partnership and a corporation. It provides limited liability protection to its partners (similar to a corporation) while maintaining the flexibility of a partnership.

ADVANTAGES

It is a limited liability for partners, shielding personal assets from the partnership’s liabilities. It has pass-through taxation similar to a regular partnership.

DISADVANTAGES

It is more complex and expensive to set up compared to a regular partnership. And it is not available in all provinces in Canada.

TAX ADVANTAGES

Pass-through taxation allows partners to report business income on their individual tax returns.

APPROXIMATE COSTS

Creating an LLP involves registration fees and legal expenses for drafting the partnership agreement and LLP documentation.

V. COOPERATIVE (CO-OP)

A cooperative is a business owned and operated by its members, who pool resources to achieve common goals. Co-ops can be incorporated or unincorporated.

ADVANTAGES

There is democratic control, with each member having equal voting rights, regardless of their financial contribution. Members share in the profits and decision-making process. Cooperative principles emphasize community and social benefits.

DISADVANTAGES

It has limited access to external funding and capital compared to other business structures. Additionally, there are more complex governance structures due to member involvement.

TAX ADVANTAGES

Co-ops may be eligible for certain tax incentives or deductions, depending on their activities and objectives.

APPROXIMATE COSTS

The cost of creating a co-op includes registration fees and legal expenses for incorporating and drafting the necessary cooperative documents.

VI. CHOOSING A PROVINCE FOR INCORPORATION

Selecting the province to incorporate can influence your business in various ways, including tax rates, regulations, and access to resources. It is essential to consider these factors and consult with legal and financial professionals to make an informed decision.

VII. FOREIGN INVESTORS’ PREFERRED COMPANY TYPE

Foreign investors often choose to create a subsidiary of an existing foreign corporation or incorporate a Canadian subsidiary. This option provides the advantages of limited liability protection while leveraging the parent company’s existing resources, reputation, and expertise. Additionally, a Canadian subsidiary can benefit from tax incentives, grants, and government support available to Canadian companies.

CONCLUSION

When deciding on the type of company to create in Canada, it’s crucial to evaluate your business objectives, financial capabilities, and risk tolerance. Each business structure has its advantages and disadvantages, and the optimal choice will depend on your specific circumstances. Seeking professional advice and understanding the legal and tax implications can help you make an informed decision and set your business on a path to success in the Canadian market. Remember that the business landscape is constantly evolving, so staying up-to-date with the latest regulations and industry trends will be essential for long-term prosperity.

Publicado en

WHAT IS PERMACULTURE?

Permaculture
Permaculture
Thursday, October 19, 2023 By Jessica Hernández Sales Assistant

In an increasingly developed world, the need arises to seek a balance between large industries and buildings, and the conservation of our natural environment with the animal and plant species that inhabit it. As a result, society has discovered alternative ways of life and construction that have as their axis the respect for Mother Nature and the rational and conscious use of the resources she provides us. One of these concepts is permaculture, which we will discuss below.

Meaning and origin of the term

The word is the result of a contraction: in the origin of permaculture it was applied to refer to “permanent agriculture”, but later it was extended to the concept of “permanent culture”. In addition, the term was first used by scientists David Holmgren and Bill Mollison in 1978. Since its inception, permaculture has been seen as a possible solution to the current environmental and social crisis. Thus, it ranges from sustainable agriculture to the construction of ecological and greenhouses, as well as a greater use of natural resources as an energy source (Aquae Fundación, 2021).

Permaculture zones

Elements of Permaculture

It is said that there are 2 types of permaculture; a rural one that contributes to better conservation of resources such as water and fertile soils in rural areas, and an urban one that is focused on the redesign of cities and their houses with the aim of generating a positive impact.

In turn, permaculture is just a concept that encompasses different branches such as ecological-environmental design, ecological engineering, construction, integrated water resource management, sustainable architecture, and agricultural systems.

Also, permaculture is based on 3 ethical principles:

    • Care of the earth: this principle seeks the conservation of soil, forests and green areas in general, as well as water.
    • Care of people: refers to the satisfaction of basic human needs using existing natural resources, always seeking individual and collective care.
    • Fair distribution of surpluses and capacities: surpluses are redistributed, so that waste must be properly recycled in order to be returned to the ecosystem again. It is also about sharing with future generations some of the wealth and resources that the planet is giving us in the present, setting limits to consumption and reproduction.

Permaculture also has 12 design principles:

    • Observe and interact
    • Capture and store energy
    • Obtain a yield
    • Applying self-regulation and accepting feedback
    • Use and value natural resources and services
    • Stop reproducing waste
    • Design patterns in detail
    • Integrate rather than segregate
    • Use slow solutions
    • Value diversity
    • Use the edges and value the marginal
    • Respond creatively to change

Zones

Permaculture follows the classification of zones as an intelligent way of organizing the human environment according to the regularity of its needs, the care of plants and animals. The most frequented zones throughout the day should be located in the zones close to the home, i.e. zones 1 and 2. Those that are visited somewhat less frequently in zones 3 to 5.

Zone 0

The house or home in the center. This is the starting point for the people who live here to save effort to reach the rest of the zones, in the same way covering their water needs and taking advantage of natural resources such as sunlight. This is an attempt to create a sustainable model where people can live and work. This zone is an informal designation since Bill Mollison does not define it in any of his books.

Zone 1

This is the area closest to the house. The elements that you want to establish in this zone should be those that need to be visited more frequently, such as vegetable gardens where there are plants that will be used daily, such as parsley, lettuce, strawberries, etc. You can also place an area for organic waste such as a compost bin.

Zone 2

This area is used to locate perennials that require somewhat less frequent maintenance than in zone 1. An occasional visit for weed control or pruning. Fruit trees, pumpkins, etc. can be located here. It is also an ideal place to place honeycombs or large compost bins.

Zone 3

The area where the main crops should be established as a business. After the establishment of this zone, it requires a minimum of maintenance such as irrigation and weed control thanks to mulching which is a cover that can be composed of straw, plant debris, or pine bark to protect the soil from the sun and prevent moisture from evaporating easily. Mulching will mean that you will only need to visit this area once or twice a week.

Zone 4

This zone should be a semi-wild forest area. It is intended for foraging, gathering wild food (such as mushrooms), and firewood.



Zone 5

Zone 5 should be a totally wild area with no human intervention except observation of nature and its cycles. This zone will help preserve bacteria, fungi, and insects that will help the above-mentioned zones (Ross, 2005).

Layers

    1. Layers are one of the tools used to design functional ecosystems that are sustainable and of direct benefit to humans.

      In general, there are seven recognized layers in a food forest:

      • tree canopy
      • understory layer
      • shrub layer
      • herbaceous layer
      • soil surface
      • rhizosphere
      • vertical layer

      Another concept used in permaculture is the so-called edge effect, which is the effect of juxtaposition of opposing environments within the same system. It is considered that it is precisely in the places where the opposites meet that intense productivity takes place (Aquae Fundación, 2021).

       

      Permaculture is shown as an alternative to the accelerated industrial life of cities, promoting the welfare of all its members. It recognizes community support instead of competition, promoting the harmonious existence of all living beings.

REFERENCES: