Commercial Operations: Registration and Accounting
Item 3: Advertising Registration
I. The Register as a Record of People. Public Employer as Required. Employers and Events Register.
The Register is an administrative institution whose main purpose is to advertise what is recorded, and it also performs other functions assigned by law. An individual employer is not required to enroll in the registry. However, this has a number of consequences, mainly that if an employer does not register, they cannot enter any act or contract for their activity. The primary purpose of the Register is to publish certain legal situations of the subjects registered, as attributed by the law. It also corresponds to legalizing Register books of business, deposit, and publication of annual accounts of companies.
II. Organization (Register, Central Register, and Register Official Bulletin).
There are two types of commercial records:
- Commercial Regional Records: Located in the provincial capitals, they maintain a series of books, which are: the journal, the inscriptions, that of legalization, deposit accounts, the appointment of experts and auditors, and the Index and Inventory. In front of each Land Registry is a trade.
- Commercial-Central Registry: It brings together data from all the entries made by the Regional Trade Registers. It also has two other functions: issuing certificates on the names of companies and publishing the Official Register.
III. Formal Advertising.
The Register is a public record because it precisely aims to allow third-party knowledge of the situations registered. To access the contents of the registry, there are several procedures prescribed by the regulations, which are computer terminals located at the offices of the records and information notes. Generally, the entry in the Register has a declarative character, meaning that the registry gives publicity to something that has already occurred (and has been perfected) outside.
IV. Advertising Material.
The inclusion of any fact, act, or contract in the Register can only occur under a public document and can only sign up for it to documents relating to acts or contracts, according to the laws and regulations. In each patient who enrolls in the registry (of those provided in Article 83), a personal page is opened in the registry, and that sheet will be registering all acts, contracts, events, and circumstances relating to this subject, who enroll in the registry. As for the registration procedure, at the time the document is presented to the registry, it issues a receipt which states the type of document that has been filed and the date and time of presentation. After that, the registrar must perform what is called the “qualification of the lease that has been requested.” If the rating is positive (good), its final registration is performed, but the date of registration shall be deemed the date on which the seat was performed in the journal.
Item 2: Duty of Documentation and Accounting of Commercial Operations
I. General Ideas.
I. The Duty of the Employer Accounts.
The Commercial Code provides in Article 25, the employer’s obligation to keep proper accounts and proper to business activity. The accounts of the entrepreneur are good for himself because it lets you know the financial status of your business.
II. Formal Accounting. Books of Accounts and Documentation of Employers.
1. Books of Accounts and Documentation of Employers.
Also, the Commercial Code states the books that every entrepreneur must necessarily maintain. One of them is the “book of inventories and financial statements,” which reflects the year-end inventory and annual accounts. The second binding book is the “journal,” which, daily, records all transactions relating to business activity. If the employer is social, it is required to also carry another book, which is the “minute book,” which records the minutes of meetings of the bodies of the society. In the event that the Company is an LLC, it must also contain the “Book of Shares Nominal” and “Register of Members.”
2. The Secret of Accounting and Communication Exhibition.
The Commercial Code establishes the general principle that the employer’s accounting is secret, with exceptions. The first, “Communication from the books,” and the second, “the exhibition of the same,” have in common that they have to be enacted by a judge from office. Differences:
- The “Communication” is a general recognition of the books of the employer and can only be ordered in certain cases provided by law, including cases of inheritance.
- “The display” can only be ordered when the employer can take some responsibility in the court case in question, and can only be limited to entry or entries that may be of interest for that matter.
3. Securities Probative of Accounting Books and Documents.
As for the probative value, in view, the books have traditionally been considered a full test of the operations reflected. However, this has changed when considering proven the existence of an operation, taking into account the books.
III. Material Accounting. Annual Accounts.
The Commercial Code provides that, annually, every employer should submit their annual accounts, which will consist of:
- Balance Sheet: This will reflect the assets and rights that form the company’s assets and obligations are liabilities.
- Income Account: Income and expenditure for the year are recorded.
- Memory: This is a document through which expands or comments on the information contained in the two previous documents.
Through these three documents, the Commercial Code intended that the annual accounts present a fair employer’s assets, financial condition, and results of the company.
IV. Auditing Accounts. Function Assumptions and System.
The truth of the annual accounts is guaranteed by law, auditors, which, after consideration thereof, prepares a report on the reliability of the documents to be reviewed. However, not all employers are required to submit their accounts to Audit Accounts, only the following entrepreneurs are covered:
- Those listed.
- Societies engaged in insurance.
- Banks, savings.
- Corporations and limited liability companies that meet certain requirements.