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Starting a business in mexico as a foreigner
1. Request the corporate name to the S.E.In Mexico, there is a public entity in charge of approving or rejecting the denominations (name) that entrepreneurs propose when incorporating a company, this public entity is the Secretariat of Economy (S.E.). To request it, you will have to go to a notary public. The notary public will ask for the name under which you want your company to be registered in Mexico. If you have an e-signature or electronic signature, you can request the denomination in person at the S.E.’s website, once there, you must also select the notary with whom you will sign it. You must take into consideration that there may be other companies with a name similar to yours, so it is possible that the first name you propose will not be accepted. It is for this reason that we recommend to apply for 3 to 5 different names, this way you will increase the probabilities of authorization, avoiding wasting time in making future applications with alternative names to the one that was rejected.
2. Prepare your company’s articles of incorporationOne of the mandatory and necessary documents to starting a business legally is the articles of incorporation of your company. In due time, it must be drafted and, according to some common parameters, it must contain certain fundamental data required by the country. Once the articles of incorporation have been drafted, they must be signed by all the members of the company. In order to prepare these documents, legal advice from lawyers in Mexico will be necessary. For this purpose, we recommend that you prepare the articles of incorporation tailored to your business, also taking into account the needs of the partners who will be part of it.
3. Obtain your Federal Taxpayers Registry (RFC) before the SAT (SAT)The third step you must take to start a business is to obtain your Federal Taxpayers Registry (Registro Federal de Contribuyentes). In general, to obtain the RFC of your mercantile, civil or special company, you must go to the offices of the Tax Administration Service (SAT) in the place where the company was incorporated. Only in the case of a simplified stock company (S.A.S.) you must go to the portal of the Ministry of Economy, instead of the SAT offices to carry out this procedure.
4. To register the Articles of Incorporation in the RPPCOnce you have signed and delivered to a notary public the Articles of Incorporation of your company, the next step necessary to starting a business in Mexico as a foreigner is to register it in the Public Registry of Property and Commerce (RPPC). This step takes time and money as you will also have to pay registration fees. These registration fee costs vary depending on the state where you want to register and create the company in Mexico.
5. Registering with the IMSSEven if it is a company in which only the partners are the only workers, you must go to the Mexican Social Security Institute (IMSS) to request its registration and be able to make the personal contributions of the future employees of the company, or that of the current partners. It is important to point out that this is an in-person process and you must bring the documentation required by the IMSS; the only exception is the S.A.S., where the process, as well as the Federal Register of Clients, can be done in the same S.E. portal.
6. Registering in the RNIEMexican law establishes that companies with foreign participation must register in the National Registry of Foreign Investments (RNIE). In addition, companies with very large capital holdings are required to submit annual financial reports to the RNIE. In Mexico, no matter what immigration status a foreigner may have, you are generally allowed to sign the articles of incorporation as a partner of the company. The fact is that there are certain activities where participation is prohibited or limited, therefore, this issue must be carefully reviewed and supervised by professionals. For this reason, the most advisable thing to do is to carry out this step together with expert lawyers in Mexico.
7. Register with the other required organizationsDepending on the line of business of the company, you may be required to register with different organizations. Examples of the most common agencies include the Mexican Institute of Intellectual Property, the Ministry of Health, the Ministry of Ecology and Environment, etc. This step also includes requesting any municipal or state permits that may be required depending on the geographic area where you are looking to establish your business.
Tips for setting up a business in MexicoIn short, creating a company in Mexico requires a series of procedures that you cannot carry out individually. Although it is possible to apply for the company name on your own, from then on it will be essential that you have the support of a specialized legal team. In addition, for other necessary steps in the creation of a company or startup in Mexico, such as registration with the SAT or registration with the IMSS, the legal representative(s) of the company will be required to attend.
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