Foreign investors who need help in setting up a company in Mexico can get in touch with one of our local company registration specialists.
| Quick Facts | |
|---|---|
| Company formation fees | For the registration of a Mexican legal entity, our team charges USD $1,800 (plus 16% VAT). |
What are the incorporation services clients can obtain? | – consultancy services, – asisstance in selecting a legal entity, – a trade name, – drafting the company’s bylaws (in Spanish and English), – addressing a local public notary and the local registration institutions, – submission of the paperwork, etc. |
How can clients be assisted in post-incorporation formalities? | Our team will: – register the company with the National Foreign Investments Registry, – with the Mexican Entrepreneurial Information System, – draft the share certificates and the corporate books. |
| Types of companies | – joint stock company, – limited liability company, – general/limited partnership, – branch office/representative office |
| Time frame for the incorporation | minimum 4 weeks, maximum 8 weeks |
| Documents for company registration | Investors interested in how to set up a company in Mexico must prepare the following documents: – the incorporation documents, signed (the articles of association), – the certificate attesting the company’s trading name, – the company’s tax identification number – Registro Federal de Contribuyentes (RFC), – documents attesting the setup of the bank account issued in the name of the company, – documents that attest the company’s registration with all the competent institutions |
| Institution in charge with the registration | – the Ministry of Foreign Relations- Secretaría de Relaciones Exteriores, – the Public Registry of Property and Commerce – Registro Público de la Propiedad y Comercio |
| Local director required | No, but there can appear certain limitations. |
| Minimum requirements for appointing directors | The basic requirements on how to set up a company in Mexico impose certain conditions for the directors of the legal entity. These are: – have an age of minimum 18 years old, – have a clean criminal record, – are not bankrupt, are not brokers. |
| Foreign-ownership allowed | Yes, but restrictions can appear in certain sectors. |
| Shareholding requirements | In Mexico, a company must be founded by at least 2 shareholders. |
| Duration of the corporate bank account setup | Minimum 6 weeks. |
| Do you supply a registered address/virtual office? | Yes |
| Obligation to be present for the incorporation formalities (yes/no) | No |
| How to obtain legal representation | The law on how to set up a company in Mexico grants the right to legal representation, which implies that the investors do not have to be present during the registration formalities, through the power of attorney. |
How can your team assist me for opening my company in Mexico?
Concerning the registration of a legal entity, our consultants can provide assistance in the following ways:
- after we discuss with our future client, we will draft a list containing all the documentation the businessman must provide us in order to start the registration of a legal entity;
- we will draft the power of attorney, through which the client grants us the right to represent him/her in the process of company formation in Mexico(the document is drafted in Spanish and English);
- we will reserve up to 3 company names on behalf of the client, with the Ministry of Economy;
- our team will also draft the company’s bylaws (in English and Spanish);
- we will address a local public notary, where the statutory documents will be notarized;
- our team will then submit the company incorporation documents with the Public Registry of Commerce.
What are the post-incorporation services you can offer?
We offer legal assistance in several post-incorporation procedures, which are mandatory for newly created legal entities, as listed below:
- we will register the legal entity with the National Foreign Investments Registry;
- we will also register it with the Mexican Entrepreneurial Information System;
- our team will draft the share certificates for the shareholders of the newly created company and the corporate books.
Can you assist with other services besides company formation?
Our team can handle the entire process of forming your Mexican company and can also provide other related services such as:
- assistance in obtaining business permits and licenses;
- virtual offices services;
- assistance in buying shelf companies;
- assistance with opening bank accounts.
What are the costs of starting a business in Mexico?
There are various costs involved in the process of starting a business in Mexico, and they vary in accordance with the selected entity, the industry, the permits necessary for the business, the Mexican state, etc., this is why we recommend you address our team for consultancy on this matter.
Concerning the costs we charge for our services, we mention the following:
- we charge USD $1,800 for the incorporation of a legal entity (plus 16% VAT);
- this price does not include third-party fees;
- provided that you will need other services than the one presented here for which we charge separate fees, you will be informed beforehand.
What are the main company types in Mexico?
If you are not sure which is the most suitable company type for your business, we invite you to request in-depth advice from our team of consultants in company registration in Mexico. Below, we will present the main legal entities in Mexico:
- stock corporation – a common way to open a company in Mexico;
- limited liability company – a legal entity that is suitable for small and medium-sized companies.
Below, you can watch a short presentation on how to register a Mexican company:
What are the main steps in opening a company in Mexico?
Please find below a step-by-step procedure for company registration in Mexico:
- choose the type of business to start;
- get permission from the Department of Trade to use the trade name;
- create the deed of incorporation;
- submit shareholders’ documentation (identification documents, the authorized entry into the nation, such as a resident permit or visitor visa, their address, typically in the form of a recent utility bill);
- obtain the company’s registered address;
- register the business with the Mexican Tax Authorities for tax purposes (SAT);
- obtain specific permits can be needed for certain businesses;
- register the company with the National Worker’s Housing Fund and the Mexican Social Security Institute if you plan to employ workers;
- register your company with the National Business Information Registry (SIEM).
How long does it take to register a company in Mexico?
The following timelines should be expected when registering a local legal entity:
- the incorporation activities can take around 4 to 6 weeks;
- 2-3 weeks are necessary for other post-incorporation obligations.
Can foreign investors open branch offices in Mexico?
Yes, foreign businessmen have the possibility of opening a company in Mexico through a branch office. A branch office is a suitable vehicle when a foreign company wants to implement the same business model in all the countries where it has business activities.
The infographic below presents some of the main steps on how to open a business in Mexico:
Is it possible to register a Mexican subsidiary?
Foreign companies can also expand their operations in Mexico through a subsidiary. The subsidiary can take the form of a limited liability company.
Can I open a representative office in Mexico?
Yes, foreign companies have the right to expand on the local market for non-commercial purposes as well (such as marketing, research, promotion, advertising, etc.), in which case they can set up a representative office. More on this subject is available here.
What is the minimum number of shareholders in Mexico?
Please mind that for the incorporation of a legal entity in Mexico the law states that the association of at least 2 shareholders (or partners) is necessary.
Contact us if you need assistance for setting up a company in Mexico.