Mexico is one of the most preferred destinations for investors wishing to set up a company in Latin America, thanks to its low operating costs and easy access to the U.S. and Canadian markets. If you are considering setting up a business in Mexico, the following guide to incorporating a company may be helpful.
For those with limited or short-term business interests, you can always take advantage of local labor by hiring through an official employer in Mexico. This means that the company will hire employees on your behalf, eliminating the need to incorporate.
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As Latin America’s second largest economy, Mexico is a beacon of regional trade. Proof of this are the more than 50 free trade agreements (FTAs) it has signed with countries and regional blocs in the Americas, Europe and Asia.
Ranked as the 17th largest exporter in the world, Mexico enjoys unique trade privileges with the rest of North America under the United States-Mexico-Canada Agreement (USMCA). In addition, as a founding member of the Pacific Alliance – an economic and political association that includes Chile, Colombia and Peru – Mexico aims to extend its influence beyond the region.
With major seaports providing access to the Pacific and Atlantic oceans, Mexico is the region’s fourth largest oil producer, producing around two million barrels per day.
If you are considering starting a business in Mexico, read on to learn how to form a company in the country, or go ahead and contact us now to discuss your market entry options.
While the business-friendly ecosystem and low labor costs are two good reasons for entering the market, anyone thinking about starting a business in Mexico should consider the following necessities that could affect the success of the operation:
In addition, keep in mind that according to Mexican regulations, your company must fulfill the following monthly tasks:
Starting a business in Mexico involves several essential steps that you must follow. Whether you are an entrepreneur or an investor, understanding the process is crucial to the successful formation of a business. Below are the key steps to establishing your business in Mexico:
Your legal representative must draft and sign a POA — a legal document that will allow you to incorporate a power of attorney on your behalf.
Your company bylaws are a document that will describe your business purpose and how it will function. Please note that these statutes must be legalized before a notary public.
You must register your company with the Public Registry of Property and Commerce, specifying the real estate that makes up your business, as well as its commercial purposes, objectives, and goals.
Request and obtain your taxpayer identification number before the Tax Administration System (SAT).
Once you choose a legal representative for your company, they can take care of all the necessary procedures to open a corporate bank account at a local bank.
Here are some banks where you can open your corporate bank account:
Once all the paperwork is completed, you are ready to start your business. Make your initial investment and start running your business abroad.
At Biz Latin Hub, our team of multilingual company formation professionals has years of experience supporting foreign investors starting a business in Mexico. With our complete portfolio of corporate legal, recruitment, and tax advisory services, we can be your single point of contact to ensure the success of your commercial operations in the South Pacific, as well as any of the other 15 countries across Latin America and the Caribbean where we are present.
Reach out to us now for personalized assistance or a free quote.
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The information provided here within should not be construed as formal guidance or advice. Please consult a professional for your specific situation. Information provided is for informative purposes only and may not capture all pertinent laws, standards, and best practices. The regulatory landscape is continually evolving; information mentioned may be outdated and/or could undergo changes. The interpretations presented are not official. Some sections are based on the interpretations or views of relevant authorities, but we cannot ensure that these perspectives will be supported in all professional settings.
Legal Team MexicoLegal Team Mexico is the Biz Latin Hub leading experts on doing business in Mexico The Team writes on the news, doing business, law, and changing regulations. The team are experts in corporate law, Administrative law, Employment law, Immigration law and legal advisory services. Read more about them here. You can contact Legal Team Mexico via our "contact us page".
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