• Creimerman Product Team

The most successful Formation of a Foreign Company in Mexico

Mexico is today one of the countries par excellence with enormous growth potential given the solid economic environment in which it finds itself, characterized by the stability of inflation, high international reserves and the growing exporter of manufactured goods.

A clear example of this is the projection of the Accenture firm, which indicates that by 2025 Mexico will be the economy number 6 worldwide. Furthermore, Goldman Sachs projects, by 2050, that Mexico will be the world's largest economy by the value of its Gross Domestic Product (GDP), only behind China, the United States, India and Brazil; for its part, HSBC estimates that it will also be the eighth world economy in 2050.

We should not overlook that this country has one of the most open economies in the world, having privileged access to 45 nations as a result of its large number of international treaties.

It is integrated into North America and, therefore, is part of the NAFTA Region, which is the largest free trade area in the world, where approximately a quarter of world GDP is generated.

Added to this advantage, on the one hand, is the contribution of highly trained human capital and, on the other hand, the productive and competitive sectors, such as the automotive and auto parts, aerospace, the agri-food sector, electronics-electrical appliances, medical devices, energy, creative industries, mining, medical tourism, tourism and financial services.

The above indicates that Mexico is a country on the way to becoming a world-class power and, therefore, is a very attractive destination for investment.

To start investing, we recommend the creation of a company, having as advantages the possibility of qualifying as a credit subject, issuing tax receipts, and interacting without restrictions with other companies and clients.

There are currently 7 (seven) legal forms of mercantile companies in Mexico and, to create a company, you must decide which of them is the one that best suits your interests, preferring to obtain advice that suits your needs.

1. Simple limited partnership

2. Limited Company by Shares

3. Limited liability company

4. Limited Company

5. Cooperative society

6. Society in the collective name

7. Simplified joint-stock company

Then, as a first step before starting the activity, you must have defined whether you will act as a natural person or as a legal person, taking into account whether you will work on your own or in association with other people.

If you are starting your business alone, it is recommended that you do so as a natural person. This way you will avoid, among others, the bureaucratic procedures and costs of setting up a company, in addition to being the only legal representative and owner of the company.

If you decide to undertake with several partners, you will only have the possibility of doing so as a legal entity, having to submit accounts to the SAT monthly, and adjusting to two possible tax regimes, that is, the general regime and for non-profit purposes.

With this last option, you need:

1. Permit for company incorporation, a procedure that must be carried out before the Ministry of Foreign Affairs. There the name of at least 5 (five) people will be proposed to opt for the approval of the company. It can be a letter provided by the SRE, indicating the information corresponding to the company and the legal regime requested.

2. The Constitutive Act before a notary once the Company's Incorporation Permit has been obtained and its approved by the SRE. This act will include the fundamental aspects of the company: Type, company name, positions, shareholders, among others.