{"id":112,"date":"2022-09-21T08:22:37","date_gmt":"2022-09-21T08:22:37","guid":{"rendered":"https:\/\/companyformationmexico.com\/?p=112"},"modified":"2024-01-31T12:00:08","modified_gmt":"2024-01-31T12:00:08","slug":"set-up-a-branch-in-mexico","status":"publish","type":"post","link":"https:\/\/companyformationmexico.com\/set-up-a-branch-in-mexico\/","title":{"rendered":"Set up a Branch in Mexico"},"content":{"rendered":"\n

The branch<\/strong> is one of the means of establishing a business in Mexico<\/strong> used by foreign corporations. It is essentially the Mexican counterpart <\/strong>of the parent company abroad and it engages in the same business activities as the foreign corporation it represents. <\/p>\n\n\n\n

Branch offices<\/strong> are the preferred solution in some business sectors, such as banking and insurance. Investors who want to set up a branch in Mexico<\/strong> can benefit from the services offered by our <\/strong>Mexico company formation agents<\/strong><\/a>.<\/p>\n\n\n\n\n\t\n\t\t\n\t\t\t\n\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t
 Quick Facts<\/th>\n\t\t\t <\/th>\n\t\t<\/tr>\n\t<\/thead>\n\t
Applicable legislation (home country\/foreign country)<\/td>\n\t\t\t\n\t\t\t

Mexican corporate law <\/p>\n\t\t\t<\/td>\n\t\t<\/tr>\n\t\t

\n\t\t\t

Best Used For<\/p>\n\t\t\t<\/td>\n\t\t\t

to carry out the same business model of the parent company, and the same business activities <\/td>\n\t\t<\/tr>\n\t\t
\n\t\t\t

Minimum share capital (YES\/NO)<\/p>\n\t\t\t<\/td>\n\t\t\t

 no<\/td>\n\t\t<\/tr>\n\t\t
Time frame for the incorporation (approx.)<\/td>\n\t\t\tapproximately 45 days \n\t\t\t

 <\/p>\n\t\t\t<\/td>\n\t\t<\/tr>\n\t\t

Documents to be filed by parent company<\/td>\n\t\t\tthe 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. <\/td>\n\t\t<\/tr>\n\t\t
Management (Local\/Foreign)<\/td>\n\t\t\t\n\t\t\t

it can be local or foreign (for foreign management it is required to have a manager who is resident of Mexico)<\/p>\n\t\t\t<\/td>\n\t\t<\/tr>\n\t\t

Legal representative required (YES\/NO)<\/td>\n\t\t\t\n\t\t\t

yes<\/p>\n\t\t\t<\/td>\n\t\t<\/tr>\n\t\t

Local bank account (YES\/NO)<\/td>\n\t\t\tyes<\/td>\n\t\t<\/tr>\n\t\t
Independence from the parent company<\/td>\n\t\t\tno<\/td>\n\t\t<\/tr>\n\t\t
Liability of the parent company<\/td>\n\t\t\tthe parent company is liable for the debts and other
\n\t\t\tlosses of the branch <\/td>\n\t\t<\/tr>\n\t\t
Corporate tax rate<\/td>\n\t\t\t30% <\/td>\n\t\t<\/tr>\n\t\t
Annual accounts filing requirements <\/td>\n\t\t\tyes, but there are fewer obligations compared
\n\t\t\tto other company types <\/td>\n\t\t<\/tr>\n\t\t
Possibility of hiring local staff (YES\/NO)<\/td>\n\t\t\tyes <\/td>\n\t\t<\/tr>\n\t\t
Travel requirements for incorporating branch\/subsidiary (YES\/NO)<\/td>\n\t\t\tno, the investors can be represented by local specialists, as long as they have sent all the documentation required for incorporation <\/td>\n\t\t<\/tr>\n\t\t
Double tax treaty access (YES\/NO)<\/td>\n\t\t\tyes<\/td>\n\t\t<\/tr>\n\t<\/tbody>\n<\/table>\n\n\n\n
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