You have decided to expand your business to Mexico or to incorporate a new company? In this guide, you will find ten steps to a successful company formation in Mexico. WMP will support you in every step to conclude the company formation as soon as possible and according to your individual needs.
Step no. 1: Find the right type of business structure
Identifying the appropriate type of business organization for your company is the basis for a company incorporation in Mexico and necessary for the further registration process. The most popular legal business entities in Mexico are:
| English term | Spanish term | Abbreviation |
|---|---|---|
| Stock Corporation | Sociedad Anónima Sociedad Anónima de Capital Variable | S.A. S.A. de C.V. |
| Limited Liability Company | Sociedad de Responsabilidad Limitada Sociedad de Responsabilidad Limitada de Capital Variable | S. de R.L. S. de R.L. de C.V. |
WMP will be happy to support you in finding the appropriate company structure for your business.
Step no. 2: Registration of the company’s name
The name of your company has to be approved by the Mexican authorities before the Mexican company can be formed in front of the notary. The Ministry of Economy (Secretaría de Economia) is responsible for name approval. It is helpful to also register the trademark at the Mexican authority IMPI (Instituto Mexicano de la Propiedad Industrial) to avoid that another company will use the same trademark.
Step no. 3: Define your company’s capital
Before starting operations in Mexico both the amount and structure of your company should be determined through capital-stock or shares. The minimum capital of each shareholder/partner has to be 1 Peso.
Step no. 4: Articles of Incorporation drawing up and approval
The incorporation document will include By-laws of the company’s name, the corporate purpose, social address as well as the shareholders’ name and the capital structure, amongst other documents. All required documents need a notary certification and an apostille. Once obtained, the documents have to be translated by an official Mexican translator. WMP supports you not only in the process of obtaining the required documents but also with the official translations.
Step no. 5: Fiscal Address of the Mexican company
All Mexican companies need a fiscal address to obtain their tax-ID. According to the corporate purpose of the business, an appropriate location is determining for the company’s success in Mexico. WMP offers individual support in the process of finding the perfect location for your business.
Step no. 6: Tax Declarations
The entity will be responsible for the monthly tax declaration at the tax authority SAT (Servicio de administracion tributaria). Please bear in mind a power of attorney is required for tax declarations.
Step no. 7: Registration of employees
For employees’ hiring processes, it is necessary to register the company at the social security and the National Worker´s Housing Fund. WMP provides you with the current legislation requirements in order to successfully hire employees in Mexico. For the registration, specific powers of attorney are required.
Step no. 8: Registration at immigration
Please keep in mind that there is a specific permit to hire foreigners which is called Constancia de empleador. This authorization has to be renewed yearly after the annual financial statements or if the company changes its legal representative or company´s fiscal address.
Step no. 9: Registration of foreign investment
Registration of foreign investment capital applies in case one of the business owners’ nationality may be other than Mexican. Registration at the Ministry of Foreign Investment has to be done within 40 days after the business incorporation date.
Step no. 10: Starting your business
Congratulations! You can start with your business operation! WMP keeps supporting you in further processes, such as developing a successful market entry strategy and finding local partners. Take a look at all our services!
We are looking forward to cooperating with you!
Click here for further tips on starting a business in Mexico.
Contact us!
We serve our clients, who represent different industries, with over 100 employees at our offices in Queretaro, Mexico City, Puebla, Stuttgart (Germany), and Greenville (S.C., USA).
WMP Mexico Advisors
Pabellón Santa Fe
Anillo Vial Junípero Serra 2601 Office 201
Residencial Juriquilla Santa Fe
76230 Querétaro, Querétaro Mexiko
T: +52 (442) 209 6870
E-Mail: info@wmp.mx
Why we are your partner for building business in Mexico?
- Our long experience, insight know-how and extensive network of contacts and relationships
- Our full service
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Dicsover the most attractive economic regions located in Mexico
- Automotive and aerospace industries in the Bajío region
- Puebla – Automotive mecca since the early days
- Metalworking industry at the US border
- Jalisco – The Mexican Silicon Valley
- Headquarters and the chemical industry in the capital region
- Baja California – The gateway to the Pacific Ocean
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Automotive and aerospace industries in the Bajío region
Located in the center of the country, the states of Aguascalientes, Guanajuato, Querétaro, and San Luis Potosi are among the most popular regions when it comes to the location of automobile manufacturers. The new BMW and Daimler plants, which will open in 2019 and 2020 respectively, will also ensure an additional demand for suppliers. For the aviation industry, a strong growth potential is predicted for the coming years, which will consequently attract more FDI.
The Canadian company Bombardier has a strong presence in Querétaro, and a specialized Aviation University is located there. Overall, Mexico is one of the six most important suppliers in the U.S. aviation sector.
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Puebla – Automotive mecca since the early days
Since the mid-sixties, the Volkswagen Group has been producing individual models in Puebla. Meanwhile, the German car manufacturer Audi has established facilities in the same state, more precisely in the village of San José Chiapa. In 2016 the new production plant, which includes an education center, was inaugurated.
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Metalworking industry at the US border
Years ago, the metal industry was established close to the US border, in the Mexican state of Nuevo León, especially around its capital Monterrey. An advantage of this location is its proximity to the US market, as 84% (2017) of exports go to the neighboring country.
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Jalisco – The Mexican Silicon Valley
IT companies have settled mainly in the state of Jalisco, which is located on the west coast of Mexico on the Pacific Ocean.
The region around Guadalajara is known as the Silicon Valley of Latin America, where you can find more than 700 high-tech companies such as Oracle, HP, Motorola, and IBM. Jalisco currently has the fifth-highest number of companies with FDI in Mexico. Approximately 50 percent of all foreign investment comes from the United States and Canada, with another 25 percent from Europe.
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Headquarters and the chemical industry in the capital region
The location in and around the Mexican capital has been chosen by many companies for their Mexican headquarters. It is not only the central location and the well-developed infrastructure that speak for this region, but also its proximity to the economically strong regions of Puebla and the Bajío. The capital region has attracted companies from the chemical industry such as BASF and Bayer.
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Baja California – The gateway to the Pacific Ocean
Baja California is an excellent opportunity for suppliers in all sectors due to its privileged geographical location and proximity to the United States. In recent years, medical technology is the main type of company to be established in this region; these companies work closely with manufacturers in San Diego.
The port of Ensenada, one of the five seaports in Baja California, is one of the most important ports on the Pacific Ocean.