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Buy a Ready Made Company in Mexico

Buy a Ready Made Company in Mexico

A ready-made company is a business entity that has already been registered but hasn’t had any economic or business activities. These legal entities are also called shelf companies and can be a suitable option for those foreign investors in Mexico who want to start their business activities as fast as possible.

In order to buy a ready-made company in Mexico, investors need to follow a few steps and perform a verification before acquiring the legal entity. One of our Mexico company formation agents can help you buy a shelf company and start your activities in the country.

The advantages of ready-made companies

The ready-made company in Mexico is a business entity, typically a limited liability company, that has been incorporated according to the Mexican corporate laws and standards but has not been used for trading or any type of business activity.

The fact that the company has been “left on the shelf” and has aged means that the legal entity doesn’t have debts or any negative credit history. They can be newly registered legal entities or they can be types of companies that have been registered for some years (which may represent an advantage for gaining credibility). 

These are known as aged shelf companies and the main advantage investors can obtain is that the company can have a better credit score when dealing with financial institutions. This is due to the date of incorporation (older companies can obtain loans following simpler procedures, compared to newly incorporated businesses).

Therefore, besides the fact that investors will not have to waste time with the process of company formation in Mexico, they will also have a better credibility on the Mexican market.

Our team that specializes in company formation Mexico can give you detailed information on the transactions needed to purchase a ready-made company. The process is straightforward and the company, once transferred onto the name of the new owner, can start trading right away.

However, investors are advised to be cautious when purchasing Mexican legal entities and, in most cases, perform a company due diligence to ensure that the company is indeed debt-free and hasn’t have a business history.

Buy a limited liability company in Mexico

The type of company most often employed by local and foreign investors in Mexico is the limited liability company (LLC). Entrepreneurs willing to buy a shelf company in Mexico will find numerous options when looking to purchase this type of company, with different ages (from a few months to a few years) and with variable capital.

Our Mexico company registration experts can help you during the company purchase if you prefer to buy a ready-made company. We can help you follow steps needed for setting up a company in Mexico. Address us for more information on the investment options in the country and for personalized company incorporation assistance. 

Ready-made companies incorporated as LLCs in Mexico

The limited liability company (LLC) represents the most common way to open a company in Mexico. This is a corporate structure, separate from the shareholders, who benefit from limited liability against the debts of the company. It is ideally suited for small and medium companies and it can be set up for almost all business operations.

This is the most common way to start a business for both local and foreign investors and this is why most of the ready-made companies available for sale are incorporated as LLCs. The LLC has the following characteristics:

  • it can be set up with 100% foreign capital;
  • it needs a minimum share capital of MXN 3,000;
  • the company must be founded by minimum 2 investors (known as shareholders);
  • however, there is a maximum number of shareholders, limited to 50;
  • the process of company incorporation in Mexico can take up to 4 weeks (this is because the formalities for opening a bank account take a longer period of time here) – however, this timeframe can be avoided by buying a ready-made company.

Obligations after the purchase of the shelf company in Mexico

The sale of the ready-made company is completed through a sale agreement. Once the company belongs to the new owner, he or she needs to report all the changes to the Mexican company registration authorities (trade register, tax authorities, employment agencies, etc.).

The same institutions that are involved when an investor will set up a company in Mexico must be informed and/or contacted for a variety of procedures after the sale, such as for taxation purposes. After the purchase, the investor can change the objects of activity initially stated in the company’s incorporation documents, appoint new directors, change the company’s address and many others.

After you purchase the ready-made company, you will start the business activity and this implies that you will need the services of an accountant. You can hire our CPA in Mexico, who can handle any type of accounting procedure.

The CPA is a type of accountant with a higher education and expertise compared to a basic accountant and this can be of help in numerous ways for a businessman, including in tax advice. If you want to start a small business, you can use the services of any types of accountants in Mexico. We invite you to contact us for more details on the process of buying a ready-made company in Mexico.