Open a Representative Office in Mexico

Our consultants can provide legal assistance and representation to foreign companies wishing to open a representative office in Mexico. Please contact our specialists in company formation in Mexico for in-depth information on the registration process.

Quick Facts
What is a liaison office	A liaison office (or representative office) is an establishment set up for non-commercial purposes. It is generally incorporated by foreign companies who want to test new markets.
Incorporation obligations	In order to open a representative office in Mexico, investors must follow the same steps for company registration applicable in this country (have a registered address, register with competent authorities, comply with employment regulations, etc.).
Types of activities it can undertake	Non-commercial activities (more exactly, activities that do not generate an income), such as marketing or research.
Have a registered office in Mexico (yes/no)	Yes
Registration costs	$2,168
Capital requirements	Not applicable
Duration of the registration process	Up to 16 weeks.
Tax obligations	Although the liaison office is not liable to the payment of corporate taxes, it still needs to pay employment taxes.
Reporting formalities (yes/no)	Yes
Institution in charge with the registration formalities	Investors can open a representative office in Mexico by addressing the Mexican Ministry of Economy and the Foreign Investment National Commission.
Law applicable to liaison offices	Federal Duties Law (Ley Federal de Derechos), Foreign Investment Law, Company Law.
Documents that must be submitted by the parent company	Foreign companies can open a representative office in Mexico by submitting the following: – a completed request to set up the liaison office (original and copy); – a power of attorney which grants the right of legal representation to the appointed person; – the articles of incorporation and the certificate of incorporation of the foreign company; – translated and legalized bylaws; – proof of paying the registration fees; – any other documents that may be requested during the application.
Licensing requirements	The company will receive an authorization to function in Mexico. The authorization will state that the establishment is not entitled to engage in commercial activities.
Appointing an accountant (yes/no)	Yes
Services offered by our team	Our consultants can assist foreign companies in the process of preparing the application file. You can rely on our team on opening a bank account, renting/buying an office space, completing employment procedures, submitting financial documents or any other reports, and many other services.

What is a representative office?

The representative office is also known as a liaison office, and it defines a type of structure that is used only for non-commercial purposes. The representative office is set up by a foreign company abroad, and for registration, the foreign representatives must follow the steps for setting up a company in Mexico stipulated by Mexican law.

What types of activities can a liaison office undertake in Mexico?

The liaison office can only engage in activities that do not generate income/profit. For this purpose, it is permitted to develop marketing-related activities, or to establish local business connections and to analyze the Mexican consumer market.

What entities can set up a representative office in Mexico?

Any type of entity, including non-governmental organizations, can operate through a liaison office in Mexico. The process of company formation in Mexico will be the same, regardless of the entity that sets up this type of establishment.

What types of services can your team offer?

You can rely on our team of consultants for a variety of corporate services. For the registration of a representative office, we will:

assist in gathering the registration paperwork;
address the local authorities that are involved in the incorporation process;
assist in finding a suitable business address (we can also help you negotiate and sign the rental agreement);
help you in the process of hiring local workforce, etc.

How can I obtain your services?

Our consultants can represent foreign clients in the process of opening a liaison office in Mexico after the representatives of the foreign company (or its shareholders) grant us a power of attorney.

What are the incorporation obligations for a Mexican liaison office?

Our consultants in company incorporation in Mexico have prepared a short presentation on a few highlights of the registration process:

the foreign company abroad, the founder of the representative office, must pay registration duties in the amount of $2,168;
the payment of duties is regulated by Article 72, Section V of the Federal Duties Law (Ley Federal de Derechos);
a compulsory step, applicable to a representative office as well as to those who will open a company in Mexico, is to set up a corporate bank account, a procedure that can be completed in 8 weeks;
overall, the registration of a liaison office can be completed in 16 weeks;
the entity can be founded by 1 shareholder (the parent company abroad).

What documents are required for incorporation?

The documentation required for the registration of a liaison office is similar to the one required for company incorporation in Mexico. Investors must prepare a shareholders’ resolution through which the decision to set up a representative office is established, submit its incorporation papers, register with the Mexican authorities, secure a registered address, etc.

What is the institution responsible for the registration of a liaison office in Mexico?

A foreign company can open a representative office in Mexico after obtaining approval from the Ministry of Economy. You can rely on our team of specialists in company formation in Mexico, who can present all the requirements imposed by the institution.

How long does it take to register a representative office in Mexico?

Given that the process of registration is like the one commercial companies must follow, the overall standard incorporation process can take at least 1 month.

Is the liaison office liable to taxation in Mexico?

Tax obligations can arise only in connection with employment, given that the entity is not set up for commercial purposes. Due to this, the rules of the Mexican income tax will not apply.

Who bears the responsibility for the liaison office?

The parent company abroad is fully responsible for the representative office, for its decisions, liabilities, incorporation formalities, and other post-incorporation obligations (taxation, reporting, etc.), making this structure rather like the branch office.

The infographic below presents how to establish a Mexican liaison office:

Do I need special approvals if I represent a financial institution expanding in Mexico through a liaison office?

Banks operate through a representative office when wanting to address any potential clients in a new market. It must be noted that in this case, it is necessary to obtain approval from the Mexican National Banking and Securities Commission.

Do I need to hire employees?

Whether investors open a representative office in Mexico or a commercial company, they will need to conduct specific employment activities, as their local offices will need to operate with at least 1 employee (of course, the number of employees can increase in accordance with the needs of the business).

Can I open a company and a liaison office at the same time?

It is also important to know that if you want to open a company in Mexico, you can’t open a representative office at the same time. As such, you either directly open a business, or you first open the liaison office, analyze the parameters you need to see if you can start a business, and then register a legal entity.

The video below offers a short presentation on how to open a Mexican liaison office:

What is the law applicable to Mexican liaison offices?

There are many rules of law applicable to a liaison office, including the Company Law (for matters concerning the incorporation, the registration of employees, employment taxes, reporting, etc.). According to the Mexican Government, the liaison office must also follow Article 21 of the Regulation of the Foreign Investment Law and the Foreign Investments National Registry.

We invite you to contact our consultants specialized in company formation in Mexico for full legal representation in the process of setting up a liaison office here.