Name of the stock corporation (art. 164 LGS)
The name must include “sociedad anónima”, an abbreviation or S.A.; a single-shareholder company must identify itself as S.A.U. Omission makes representatives jointly and severally and unlimitedly liable together with the company.
What article 164
Article 164 governs the name of an S.A. and S.A.U. and sanctions omission of the company-type designation.
The company name may include the name of one or more natural persons and must contain the expression 'sociedad anónima', its abbreviation or the initials S.A. A single-shareholder stock corporation must contain the expression 'sociedad anónima unipersonal', its abbreviation or the initials S.A.U.
Omission: sanction. Omission of this designation makes the company’s representatives jointly and severally and unlimitedly liable together with the company for acts entered into under those conditions.
Source: Law 19,550, art. 164 — InfoLEG (updated official text)
Commentary
The type designation warns third parties that they are dealing with a limited-liability stock corporation. An S.A.U. must also disclose that it has a single shareholder.
The sanction is significant: a representative contracting without the type designation may incur personal liability.
Distinctions often confused
Practical impact
Correct use of S.A./S.A.U. in contracts and documents avoids the personal liability that may arise from omission.
Frequently asked questions
Must “S.A.” appear in the company name?
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