How to create a startup in Mexico?
Mexico is becoming a booming country in terms of entrepreneurship, it is considered the second favorite place (after Brazil) as the preferred country in Latin America to create companies. In this article we mention the basic requirements to create a startup in Mexico, keeping in mind that you should put yourself in the hands of a team of lawyers in Mexico to advise you throughout the process.
Both entrepreneurs who are considering creating a startup in Mexico, as well as those who want to internationalize a business based in Spain, should know the basic requirements to succeed in this adventure. How to create a startup? First of all, we advise you to have a lot of information to be able to decide the type of commercial company that best suits your particular case, since it may be that in Mexico a different corporate form is more convenient for you than the one you are using in Spain. The ideal is to request information from a team of lawyers for companies in Mexico.
Requirements to create a startup in Mexico
1. Official IDs.
Whether you live in Mexico or abroad, two valid official IDs are required to prove the identification of the partners participating in the creation of the company.
In the case of being Mexican (national or naturalized) you would be asked for your INE or IFE, and another ID, which can be a driver’s license or Mexican passport. If you are a temporary or permanent resident of Mexico, you will be asked for your immigration document and either the passport of your country of origin or the driver’s license issued by Mexican authorities.
Finally, if you are a foreigner planning to create a startup in Mexico, you will only be asked, apart from your passport, for the immigration document with which you entered the country.
2. Proof of address
One of the important steps to create a startup in Mexico is to provide a proof of address for the partners. This can be done in several ways, such as providing a receipt for water, electricity, gas or telephone, as long as these receipts are original and not older than 3 months. In the case of foreigners who do not live in Mexico, the same thing must be done, but applied to the place of their residence abroad; the same times of validity and services are also applied. If the name of the member does not appear in the voucher, the voucher must be validated by means of a contract, for example a lease.
3. Federal Taxpayers’ Registry (RFC)
To create a startup in Mexico, it is of utmost importance to provide the RFC of the partners with an identical password, this is how it is expressed in the portal of the Tax Administration Service in Mexico. In case you are a foreigner without any type of condition of stay in Mexico, this requirement does not apply to you.
4. Unique Population Registration Code (CURP)
For Mexicans and residents in Mexico who want to open a startup in Mexico, their CURP is requested as another identification. Therefore, if you are a foreigner without any type of condition of stay in this country, this point does not apply to you.
5. Company Checklist
In addition to the relevant official documents mentioned above, it is necessary that the partners fill out a checklist with the general data of the company such as:
- Name of the company (Denomination or corporate name).
- General data of the partners (age, date of birth, place of birth, address, occupation).
- Define the form of administration (sole administrator or sole manager; or board of directors or managers).
- Corporate purpose (everything you are going to do in the company; its economic activities).
- Registered office (where the company will be located).
Commissioner or Supervisory Board (if applicable). - Capital stock
- Foreigners admission clause.
- The place where the articles of incorporation will be signed and then registered in the Public Registry of Property and Commerce (RPPC).
Steps to create a startup in Mexico
First of all, to create a new startup you must apply for the designations to the Ministry of Economy. Once you have received it, you must obtain your Federal Taxpayers Registry (RFC) from the Tax Administration Service (SAT).
Next, you will have to register the Articles of Incorporation with the Public Registry of Property and Commerce (RPPC) and also register with the Mexican Social Security Institute (IMSS).
Finally, you will have to register in the National Registry of Foreign Investments (RNIE) for companies that have foreign partners’ participation, and you may also have to register in other organisms if the activity of your business or the location where you establish it requires it.
To create a startup, having the help of a legal and financial advisor is of vital importance to create a startup in Mexico. At Delvy we are lawyers specialized in startups and we have a new office in Mexico. You can contact us through our contact form or through our email address [email protected].
