For foreign companies, Mexico is considered one of the five most attractive countries in Latin America to do business. Consequently, in recent years it has positioned itself as one of the countries with the highest number of foreign companies and investments. If you wish to register a company in Mexico, you must know the essential steps to follow and all the procedures and requirements that will be requested. If you want to avoid inconveniences during the process, it is advisable to do this process with a legal and financial partner in Mexico.
In this article, we will recapitulate the indispensable to register a company in Mexico and the steps to follow to do it successfully.
Why should I register a company in Mexico?
Over the past two decades, Mexico has been working hard to open its economy to foreign trade and investment. Today, Mexico has more than 25 bilateral free trade agreements around the world. As business opportunities grow, many efforts have been made to simplify administration as much as possible to facilitate the entry of foreign entrepreneurs and investors.
Moreover, the Ministry of Foreign Affairs has been working along this same policy line, simplifying the visa application process through the Immigration Reform Act of 2012.
Tips prior for Mexico company register
Creating a company in Mexico or taking your Spanish business to the Mexican market is a circumstantial decision and therefore it is important to analyze each key planning point. Some of the tips to create a company in Mexico:
- Establish the type of company you are going to set up, detail the forecasts or projections for the future and the possibilities for expansion that you believe exist.
- Set short, medium and long term objectives taking into account the capital. This way, you will be able to have a plan of action before the diverse contingencies that can arise in the initial phase.
- In case there are partners, set the dividend for each of them, both in local or international currency, if required.
- Establish the company, the domicile, the administration, the initial activities and the capacities of each person in the command area.
9 steps to Mexico business registration:
1. Register your company name:
The first step for Mexico company register, is register the name of your company, for which you must file an application with the Ministry of Foreign Affairs, in order to obtain the company’s incorporation permit. It is a written document and it proposes the name of at least five people to opt for the approval of the company.
This can be a written document or a form provided by the SRE, where the information corresponding to the company and the legal regime requested is indicated.
Generally, it is usually received in a maximum of 2 working days. This application will cost you 640 Mexican Pesos, which is equivalent to about 25€.
2. Request a tax registration number:
Once the SRE has approved the registration of the name, the Acta Constitutiva is created. This step is relatively simple, all you have to do is consult a notary public assigned by the government. At this point, you will be asked to sign the Articles of Incorporation before receiving your tax registration. This document defines or details the basic aspects of the company, such as: type of company, corporate name, administration, etc. Likewise, the document includes information such as the clauses for the minimum number of shareholders that the company will have and the integration of foreign partners. This will take you a maximum of 2 days, and will cost you 9000 Mexican pesos which is equivalent to a little less than 500 €.
3. To register the mercantile society:
Once the incorporation process has been completed, the commercial company must be registered in the Federal Taxpayers Registry of the SAT. From this action you will obtain the tax identification card with which you will be able to open bank accounts, print invoices and start business activities. You can start the process by consulting the SAT portal. This will take from 1 to 3 days.
4. Register your articles of incorporation:
Next, the company, its assets and commercial goals are registered with the public registry. To carry out this process, it is essential to have the articles of incorporation, the RFC and the power of attorney that allows the attorney-in-fact to manage the company. To receive your confirmation, you will have to wait 17 days. The cost of registration is about 80 €.
5. Register your tax identification number:
Receiving the tax identification number is possible by simply registering with the Ministry of Finance and Public Credit. This will take 1 to 3 days.
7. Register your company’s account:
Once you have registered for Social Security, the next step is to register for payroll tax with the local tax administration which is the Secretary of Finance of the Federal District Government, indispensable if you are establishing the company in Mexico. It will take you only 1 day.
8. Register in the National Registry of Business Information:
The penultimate step is to register with the SIEM (Sistema de Información Empresarial Mexicano) which is the institution that contains a complete registry of all existing companies in Mexico. The cost of registration depends on the number of employees you are willing to employ.
9. Declare your company with the National Institute of Statistics:
Finally, in order for your future business achievements to be included in national statistics, you must register with the National Institute of Statistics and Geography (INEG).
The team of lawyers in Mexico of Delvy offers legal and financial advice for those Spanish entrepreneurs who want to expand their borders and land in the Mexican market. You can contact us through our contact form, through our email or call us at (+34) 93 518 53 85.