Opening a financial company in Mexico is subject to specific regulations applicable to both local and foreign investors. Depending on the types of activities to be conducted, there are also several types of financial licenses available in Mexico.
Below, our company formation experts explain the main requirements to comply with when obtaining a financial license in Mexico. You can rely on us for support with the application.
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Activities associated with the main Mexican financial licenses
An interesting fact about Mexico is that it has one of the best-regulated financial sectors in the world. As such, the activities permitted here are numerous and are covered by a wide range of business licenses. Here are the main types of financial licensed activities in Mexico:
- banking;
- credit issuance and administration;
- insurance and reinsurance;
- investment advisory;
- securities brokerage;
- investment through specialized funds;
- crowdfunding;
- various fintech operations.
Please note that some of the activities also cover other sub-categories of services. This is the case of investment management companies, which can offer:
- asset management services;
- share purchase solutions;
- appraisal services.
Each of them is subject to specific laws and types of financial licenses in Mexico.
General requirements for obtaining a financial license in Mexico
The Mexican National Banking and Securities Commission is the main institution that issues financial licenses. For this purpose, the following requirements must be met:
- the company must meet the minimum share capital threshold;
- the business is also required to have at least one representative who has citizenship in Mexico;
- the company’s statutory documents must specify the operations it will carry out;
- details about the parties holding shares in the company must also be provided;
- a list of the directors, managers, and other key officers must be supplied;
- an operational plan of the company is required;
- a security deposit must also be made with an approved bank.
Apart from these, there are also other documents that may be required by the Banking and Securities Commission, in accordance with the type of activities to be undertaken.
Foreign investors and companies operating in the Mexican financial sector
It is possible for foreign investors to open financial companies in Mexico, as well as for overseas institutions to set up branches here. Individuals are not required to have residency in Mexico – to own such enterprises, the main requirement to respect is to appoint a Mexican legal representative only.
When it comes to foreign companies, they must obtain authorization to operate in Mexico. They can also set up representative offices, however, they cannot carry out commercial activities through them. Our specialists in company formation in Mexico can offer more information on how foreign financial companies can operate here.
Legal entities suitable for financial activities in Mexico
If you want to establish a financial company, our specialists in company registration in Mexico can help you register the appropriate company type. In most cases, this is the joint stock company, given that this entity is designed for businesses with complex operations, numerous employees, branches, etc.
Investors who want to set up a company in Mexico in this sector can also opt for 3 entities designed for the needs of financial businesses, namely:
- SOFOM (Sociedad Financiera de Objecto Multiple);
- SOFIPRO (Sociedad Financiera Popular);
- SOFOL (Sociedad Financiera de Objecto Limitado).
All types of entities can be incorporated by those who want to open a company in Mexico that operates as a non-banking financial institution. Currently, the following are available:
- there are 2 types of SOFOM (SOFOM ENR – unregulated entity and SOFOM ER – regulated entity);
- for companies registered as unregulated SOFOMs, the law does not impose a minimum share capital, but in practice it is recommended to subscribe MXN 2-5 million;
- investors who opt for company formation in Mexico for the regulated SOFOM must subscribe a capital of minimum MXN 10 million;
- for the SOFIPRO company, the minimum capital requirements vary from MXN 20 million to MXN 30 million, based on the services it offers and the region where it is incorporated.
Incorporation requirements for SOFOM, SOFOL, SOFIPRO
The registration requirements for these 3 types of financial companies are complicated and can be time-consuming. Therefore, it is highly advisable to receive legal assistance from specialized professionals, such as our team of consultants in company formation in Mexico.
Please mind that the registration process entails the obligation to obtain a financial license in Mexico, which can be granted in the form of authorizations issued by various competent institutions. In this case, 3 institutions are involved, as follows:
- the National Banking and Securities Commission;
- the Central Bank of Mexico;
- the Mexican Tax Authority.
The process of company incorporation in Mexico is bound by the submission of the standard registration documents and forms, along with a business plan containing 5 years of financial projections. These papers must be submitted in the early stages of the registration process with the Commercial Registry in Mexico.
After the completion of the registration steps, successful applicants will be obtaining a financial license in Mexico from the National Banking and Securities Commission. Please mind that these companies must abide by a set of rules and regulations, including AML/KYC rules.
While the policies governing each type of company may vary from simpler reporting and management obligations (as it can be the case of the SOFOM ENR) to very complex obligations (example: SOFIPRO), all companies must ensure AML compliance and submit financial reports. Audit is also imposed (this service is offered by our accountants in Mexico).
Our company registration agents in Mexico are also at your service with legal solutions for other matters, such as relocation. Therefore, you can also rely on us for support in immigration to Mexico. Please contact us if you want to apply for a financial license in Mexico.