A business name registration in Mexico is an absolutely necessary step in a company formation in Mexico. The chosen name for a legal entity in this country has to be filed with the Ministry of Foreign Affairs and an authorization to do business under this name has to be obtained. The entire time this step takes is of around two days and a certain fee has to be acquitted.
In this article, our company registration consultants in Mexico analyze different aspects related to a business name reservation in Mexico.
The name permit in Mexico
In this country, stock companies and limited liability companies are common types of legal entities chosen by foreign investors.
As a part of the company registration process in Mexico, having a name permit is one of the first steps required to incorporate such entities here.
The name permit can be obtained from the Ministry of Economy. The application for such a permit can be effectuated electronically.
Characteristics of business names in Mexico
For a general partnership in Mexico, the company may allow the partners to use their names in the business name. In this case, the partners become responsible for the company obligations in this country.
This kind of company can be abbreviated by the letters “S. en N.C.”.
For a limited partnership, the name of the business can be abbreviated by the letters “S. en C.S.” at the end of it.
As about the limited liability company, in case one of the partners’ name appears in the business name, he or she is liable for the larger of the business partner portions.
This type of business is not allowed to have more than 25 partners and the company description (that is, the words at the end of the business name) can be abbreviated by the letters “S. de R.L.”.
For a limited liability stock company, the company type description can be abbreviated by the letters “S.A.”, or, in case it is a variable capital one, the letters “S.A. de C.V.” are used.
If you have more questions about the business name registration in Mexico, or for help in setting up a company in Mexico, we kindly invite you to get in touch with our friendly staff.
Please contact us if you need tax and accounting assistance. Our CPA in Mexico can present the main obligation of a legal entity, the types of accounting procedures that are applied in this country, as well as the reporting formalities applicable to local and foreign businesses.
Our accountant can also advise on the tax agreements signed with other partner countries.