Entity Formation & Setup in Mexico

Set-up Your Company in Mexico

Although company formation in Mexico is generally a straight-forward process, expert knowledge in local laws and regulations is necessary to ensure no mistakes are made. To register a company in Mexico, companies must follow several steps and procedures provided by the Ministry of Economy, such as enrolling with the National Worker’s Housing Fund (INFONATIV) and the possibility of a quick set-up of your business through the Expedite Business Start-Up System.

Companies can focus on their business goals and integrating into the market while NNRoad takes care of legal requirements and incorporation. Our experts can ensure that your company is in compliance with local rules.

 

Business entities you can open in Mexico

1) Simplified Shares Company (SAS)

The newly conceived SAS structure is a product of the reforms carried out in 2016, specifically to the General Law of Commercial Companies. These reforms represent an effort by the Mexican government to encourage investment from foreign companies and even eventual setup in Mexico by foreign companies. Some of the characteristics of the SAS are:
  • A company formation process has been further simplified and made more cost-effective. SMEs will find this process to be an ideal method of entry into the Mexican market.
  • A downside to this method of entry is that the SAS structure was formed to appeal to SMEs, which is why there is a maximum yearly permissible profit of MXN$5,000,000 (converting to about USD$265,000). For this reason, multinational corporations may not find this method to be feasible, although it may still be the perfect method of expanding for SMEs.

2) Limited Liability Company

Although not as popular as Stock Corporations, the Limited Liability Company is still the second most popular setup method in Mexico. LLCs follow some of the same basic guidelines for shares as Stock Corporations. Some of the differences will be listed below:
  • SMEs find LLCs to be the most feasible method of company formation. The initial deposit is very low.
  • Another distinguishing feature of the LLC is that there is no need to pay corporate taxes since taxes will be paid through the tax returns of individual members.
  • As suggested by the use of ‘limited liability’ in the name, the assets of each individual member are protected, with members-only being liable for the shares they own in the company.

3) Stock Corporation

Also known as S.A de C.V. – Sociedad Anonima de Capital Variable (Stock Corporation) is the most popular structure for corporations setting-up a presence in Mexico.
  • The company’s overall value will be divided into shares that will then be protected by the use of creditors.
  • With no limits to the number of shareholders able to invest in Stock Corporations in Mexico, raising the capital necessary for operation (estimated at USD$3,500) should not be a concern.
  • Although it is true that Stock Corporations will face more administrative challenges, the current structure allows for these types of entities to grow exponentially in terms of size and profit.
 

Our Company Formation Service Includes:

  • Confirm the selection of a business entity type.
  • Advise with the initial capital amount, if applicable. 
  • Assist with the selection of entity name and request for use of the business name.
  • Request appropriate apostilles/legalizations.
  • Assist with the identification of key persons in the entity and provide the public deed (including initial shareholder structure) with the Public Registry of Commerce.
  • With respect to foreign company investment, assist with the registration with the Mexican National Registry of Foreign Investment.
  • Assist with the drafting of local articles of incorporation and by-laws and the execution of articles of incorporation with the notary and formal registration of the company.
  • Request Mexican Company’s Government e-signature.
  • Request Mexican Tax Identification Number.
  • Assist with the Opening of a Corporate Bank Account.
  • Assist with Mexican Employee Social Security Registration.

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