The second most populous country in Latin America behind Brazil, Mexico, is home to over 125 million people and is therefore is one of the largest markets in the region. It has to be said that despite the economic contractions that continue to be seen as a knock-on effect of the COVID-19 pandemic, flows of capital, business, and people are resuming in an attempt to recover a semblance of the normality that once existed before the world was locked down and economic activity was limited to remote operations. One way in which this is occurring is with the movements of businesses across borders, whether it is to stimulate growth, or an effort to be more economical following the hardship of the last year, and if you are considering a move abroad for your corporation, Mexico is certainly presenting itself as a top candidate for consideration.
So why Mexico? The nation is comprised of 31 different states, which goes some way to explaining the diversity of the business landscape that is seen within the country, demonstrated by the GDP of around USD$1.76 trillion. Not only this, but due to the geographical proximity with the United States and other Latin American nations, Mexico is geographically poised to be made a headquarters for foreigners looking to establish new companies, diversifying the potential development for future markets. If this has you interested, perhaps you are wanting to know how you can set up your business in Mexico, and this is exactly what we are going to outline in this article.
Below you will find all of the necessary steps you will need to take in order to set up your business to Mexico:
1. Make a request with the Ministry of Foreign Affairs
During this stage the main aim is to confirm that your intended business name is not already taken
2. Drawing up of the Constitutive Act
Said act must contain the following information:
· Company name
· Company articles
· Details of how members and shareholders will be appointed
· Board members and the powers they will have
· Company objective and duration
Once you have all of this drawn up, it is necessary to have it ratified in the form of a notarised signature from a Public Notary.
3. Registration with the Tax Administration Service
With the Secretary of Finance and Public Credit, you will apply for a Tax Identification Number. A process taking at most 3 days and possibly as little as 1 day depending on the circumstances
4. Go to the Public Registry of Property and Commerce
Upon attendance here, in the location where you will be operating, registration of the business will take place. The Constitutive Act will be presented as well as the Federal Taxpayer Identification Number and power of attorney
5. Mexican Institute of Social Security Registration
This stage is crucial in order to be able to employ people legally, even if you will be the owner and only worker. If you do not do this step you could incur a fine. Additionally, you may have to register with other departments of Government depending on the objectives and purpose of your company
Now we have established the steps you will need to follow; you may be wondering the type of documentation that is required by these institutions. Fear now, we will now outline some of the most important ones so you can have peace of mind during the application process:
1. Address proof of business premises in Mexico
2. Copies of your ID, such as passport
3. Bank references
4. Business license
So, if you feel like this process entices you further to the idea of establishing a corporation in Mexico, please get in touch with us today. We know that it can be stressful undertaking cross-border business activity, especially if this is new territory for you. Luckily, this is where our expertise lies, and the Creimerman team would love the opportunity to accompany you every step of the way to your business being registered in Mexico.