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Set up a Branch in Mexico

Set up a Branch in Mexico

Branch offices are the preferred solution in some business sectors, such as banking and insurance. Investors who want to set up a branch in Mexico can benefit from the services offered by our Mexico company formation agents.

 Quick Facts 
Applicable legislation (home country/foreign country)

Mexican corporate law 

Best Used For

to carry out the same business model of the parent company, and the same business activities 

Minimum share capital (YES/NO)

 no
Time frame for the incorporation (approx.)approximately 45 days 

 

Documents to be filed by parent companythe parent company’s bylaws and articles of association, translated into Spanish, the power of attorney granted to the person who is appointed as the branch office representative (who must be a Mexican resident), the payment of the registration fee, the identity documents and other personal details of the shareholders, etc. 
Management (Local/Foreign)

it can be local or foreign (for foreign management it is required to have a manager who is resident of Mexico)

Legal representative required (YES/NO)

yes

Local bank account (YES/NO)yes
Independence from the parent companyno
Liability of the parent companythe parent company is liable for the debts and other
losses of the branch 
Corporate tax rate30% 
Annual accounts filing requirements yes, but there are fewer obligations compared
to other company types 
Possibility of hiring local staff (YES/NO)yes 
Travel requirements for incorporating branch/subsidiary (YES/NO)no, the investors can be represented by local specialists, as long as they have sent all the documentation required for incorporation 
Double tax treaty access (YES/NO)yes

What are the main legal services your team can offer?


Our teamprovides a wide range of legal services designed for investors who want to start the process of company formation in Mexico. In the list below, we invite you to find out some of the ways in which we can assist you in company registration in Mexico:

  1. preparing a list containing the documents we require from investors, so that we can initiate the incorporation process;
  2. addressing to the Ministry of Economy, where we will register up to 3 company names the investors prefer for the branch;
  3. drafting and signing the statutory documents and other paperwork necessary for the registration;
  4. getting in touch with a local public notary for the authentication of corporate documents;
  5. registering the entity with the Public Registry of Commerce and any other institution involved in the process;
  6. signing the power of attorney, the main legal instrument through which our consultants can represent third parties.

What are the fees charged for the incorporation?


For the registration of a legal entity, investors will need to pay governmental fees and fees charged by other service providers, such as our team of consultants or public notaries. We recommend you address us for personalized information on the matter. Concerning our fees, the following are available:

  1. for the services we have mentioned earlier and for our post-incorporation services (we invite you to address us for in-depth information), we charge a standard fee of USD 1,800 (plus 16% VAT) ;
  2. in the case in which during the process of company formation in Mexico you will require other legal services, we may be able to provide them to you and we can also charge fees (if this is the case, we will inform you that the respective legal activity implies the payment of additional fees, prior to performing the procedure);
  3. please mind that our standard fee does not take into account other fees charged by other parties involved in the incorporation procedure.

What are the characteristics of the branch in Mexico in 2026?


Below, our consultants invite you to discover some of the characteristics of the branch office:

  • the foreign company abroad is fully liable for the debts and obligations of its Mexican branch;
  • the branch is subject to the same taxes as a Mexican corporation for the income it derives from the country;
  • the branch does not have legal personality, is it considered to be an extension of the parent.

    Our team can also help you open a company in Mexico.

What are some of the registration requirements?

The process of company registration in Mexicofor a branch office implies some of the following:

  • foreign companies that wish to set up a branch in Mexico must obtain an approval from the Ministry of Economy;
  • the translated Articles of Association and company registration certificate belonging to the parent company must be added to the registration file;
  • foreigners must be represented by a local representative, who must be a Mexican resident (in this respect, our consultants in company registration in Mexico can be of help, and they can represent you through the power of attorney);
  • all the required papers will be analyzed by the representatives of the Ministry of Economy and a response regarding the file can be obtained in approximately 15 days since the day when the file was submitted;
  • it is also necessary to address to the National Registry of Foreign Investments;
  • the investors must present information on the types of economic activities that the branch will develop.

We invite you to watch a short video about the procedure to set up a branch in Mexico:

YouTube video player


What does the registration file contain?

In the list below, our consultants in company formation in Mexico have prepared basic information concerning the documents that are needed for the registration of a branch

  1. the company’s bylaws and articles of incorporation (of the parent company), translated into Spanish and legalized at a public notary;
  2. the power of attorney which grants the right to legal representation for the person who is appointed as a legal representative of the branch;
  3. the person appointed as a representative must be the holder of a tax identification number issued by the Mexican authorities, which implies that the person is a resident of this country;
  4. the evidence that the applicant company has paid the necessary fees;
  5. the list of the economic activities that will be developed through the branch

What are the main corporate taxes applicable to a branch in Mexico in 2026?

The branch office is liable to the payment of the corporate tax, the value added tax, the employment taxes and other types of taxes. In the list below, you can discover information on the current tax rates applied to companies in Mexico

  • the corporate income tax – it is charged at the standard rate of 30%;
  • the value added tax – charged at the standard rate of 16% (there is also a 0% tax regime that is charged on basic goods, such as foodstuffs).

  In the infographic below, investors are invited to find out how to set up a Mexican branch in 2026:

What are the advantages of opening a branch in Mexico? 

Below, you can discover some of the advantages of this entity:

  1. the registration of a branch is a more simple and straightforward process;
  2. the registration costs are lower;
  3. the branch must follow the management decision of the parent company, while replicating its business model and procedures.
  4. the branch can also have certain tax benefits.

You can contact our Mexico company formation agents for more information on how to open a branch or any other legal business structure in Mexico.