Mexico Company Registration
At Block3 Finance, we recognize that Mexico company registration can be a complex process. Mexico ranks as the 4th most complex jurisdiction in the 2024 Global Business Complexity Index (GBCI), maintaining the same position as in 2022 and 2023. This ranking reflects the extensive rules and regulations that continue to complicate business operations in the country.
In this guide, you will find essential steps for successful Mexico Company Registration. Block3 Finance will assist you at every stage to ensure a smooth and timely Mexico company formation tailored to your specific needs.
Our comprehensive services include
Mexico Company Registration
Corporate bank account opening
Legal representative services
Nominee director and shareholder services
Business license and trade permits acquisitions
Registered local address
International trademark registration
Advantages of Mexico Company Registration
Ready access to a large and expanding market: Mexico has a population of more than 130 million people, which opens up an extensive domestic market for goods and services. The country also boasts a constantly expanding middle class, making it a much-sought investment destination.
Beneficial business environment: Mexico possesses a stable political and economic system, low corporate taxes, and an immense pool of skilled labor. The country has been on the reform path, privatizing, deregulating, and reducing the role of government.
Free Trade Agreements: Mexico has free trade agreements with more than 50 countries, including the North American Free Trade Agreement (NAFTA) with both the US and Canada, allowing it to penetrate the market of over 450 million consumers.
Low labor costs: Mexico has had lower labor costs compared with many other countries, making it an attractive destination for manufacturing and outsourcing businesses.
Strategic location: Mexico is located centrally between North America and South America, acting as the gateway to the Latin American market. Its infrastructure, transport, telecommunications, and energy systems are developed, making it ideal for companies.
Incentives for foreign investors: The Mexican government has established a wide range of incentives for foreign investors, such as tax holidays, subsidies, and investment promotion programs.
Disassociation of personal and business assets: A Mexican company may allow you to separate personal and business assets, reducing risks and accessing specialized financial products.
Time Required for Mexico Company Registration
Block3 Finance will complete the company registration process in Mexico within 8 weeks. After receiving the necessary due diligence documents from the directors and shareholders, our team will verify the availability of your chosen company name with the relevant Mexican authorities. We will handle the incorporation process efficiently, requiring no travel on your part.
Within 4 weeks of forming your company in Mexico, Block3 Finance will assist you in opening a corporate bank account with a reputable local or international bank. Our team will provide all the necessary forms for this process, ensuring that you do not need to travel. If the bank requires any additional KYC verifications, Block3 Finance will arrange an online video conference to facilitate communication among all parties.
As a result, you can expect to start operations and issue invoices with your Mexican company within 12 weeks of engaging Block3 Finance.
Are Foreigners Allowed to Proceed with Mexico Company Registration?
Yes, foreigners are allowed full ownership of their businesses, and no local partner or shareholder is needed. However, foreign-owned companies are required to have a legal representative who must be either a Mexican national or a foreign national residing in Mexico with the corresponding work permit.
A Mexican company must have a registered physical address in Mexico and obtain a Tax ID number from the Servicio de Administración Tributaria (SAT). With Block3 Finance’s guidance, navigating these complexities becomes easier, enabling you to streamline the setup process and expand your business effectively in Mexico.
Types of Business Entities Allowed for Mexico Company Registration
The most direct way of capitalizing on these opportunities is to incorporate a company in Mexico directly into the local market. However, before doing this, you need to know the most prevalent types of legal entities you can form in this nation.
There are various types of entities which are as follows:
Stock Corporation (Sociedad Anónima de Capital Variable): The Stock Corporation is the most common form of business structure in Mexico, providing several key advantages. At the moment of incorporation, its value is divided into shares, and such shares are usually protected from creditors.
Key requirements for Stock Corporation in Mexico include:
At least one director (no residency requirement)
A minimum of two shareholders (no residency requirement)
Minimum capital: MN$50,000 (~US$2,700)
A statutory auditor is required
A legal representative (Mexican national or foreign national with a work permit)
A local physical registered address
Limited Liability Company(LLC): Limited Liability Companies (LLC) are less popular than Stock Corporations but still a viable option.
Key requirements for LLC in Mexico:
Minimum of 1 member (no residency requirement)
Minimum capital: MN$3,000 (~US$160)
A registered office address in Mexico
A legal representative (Mexican national or foreign national with a work permit)
Simplified Shares Company: A relatively new company type introduced in 2016 to simplify the process for small businesses and entrepreneurs.
Key features of SAS:
Annual maximum allowable revenue: MN$5,000,000 (~US$265,000)
At least 1 director (no residency requirement)
A legal representative (Mexican national or foreign national with a residency visa)
A registered physical address
Branch Office: A branch office cannot constitute a separate legal entity in Mexico but operates as an extension of a foreign company.
Requirements for Branch Office:
Registration with the Public Registry of Commerce
Compliance with local regulations
Partnership
General Partnerships: Partners are liable without limit.
Limited Partnerships: At least one general partner with unlimited liability.
Requirements:
A representative authorized by law (Mexican citizen or foreign national with residence in Mexico)
Sole Proprietorship: Suitable for individuals who want to conduct business without forming a separate legal entity.
Requirements:
Register with the Mexican Tax Administration Service (SAT)
Obtain Federal Taxpayer Registry (RFC)
Steps to Proceed for Mexico Company Registration
1. Decide the Company Structure: Our experts will assist with choosing the appropriate business structure for your needs.
2. Decide the Company Name: We will help you submit your preferred name to the Ministry of Economy for verification. We also provide international trademark registration services.
3. Comply with Company Pre-requisites: Each structure has specific requirements, such as:
Directors and shareholders
Capital requirements
Legal representatives
4. Draft the Company Bylaws: We will prepare and notarize the bylaws for your company, ensuring compliance with local regulations.
5. Register with Local Authorities: We will submit all required documents to the Public Registry of Commerce to register your company officially.
6. Obtain a Tax Identification: Number We will assist you in obtaining your Tax ID number (RFC) from SAT.
7. Corporate Bank Account: Opening We will help you open a corporate bank account in Mexico, facilitating smooth financial transactions.
Documents Required for Mexico Company Registration
Valid identification for directors and shareholders
Articles of incorporation
Proof of registered address
Federal Tax Identification Number (RFC)
Notarized power of attorney
Internal rules governing the company
For corporate shareholders: Corporate resolution and proof of financial stability
Accounting and Tax Obligations
Corporate Income Tax (ISR): 30% rate on taxable income.
Value Added Tax (VAT): 16% on sales.
Social Security Contributions (SSC): 2.5%-7.5% on employee salaries.
Why Proceed for Mexico Company Registration?
Political: Stable democratic government, encouraging foreign investment.
Economical: Steady economic growth, low labor costs, and free trade agreements.
Social: Large, diverse market of over 130 million people.
Technological: Modernizing infrastructure, but certain industries may face challenges.
Legal: Strong legal framework, adherence to international norms.
Looking for Mexico Company Registration?
Contact Block3 Finance to learn more about Mexico Company Registration. Our team of experts will get back to you within 24 hours.
Block3 Finance is committed to making your Mexico company registration process seamless and efficient. With our expertise, we not only assist with company incorporation but also offer a range of business-related services, including offshore company incorporation, digital marketing/SEO services, offshore financial license, and much more. Our goal is to support your business at every stage, ensuring compliance and helping you thrive in the competitive market.
