Mexico, as the fifth largest country in the Americas, has a population of 123 million, ranking 11th in the world and second in Latin America. The northern part of Mexico borders the United States and is known as the "land bridge" between South and North America, making it a necessary passage between the two continents.
Mexico's economic development mainly relies on the promotion of foreign trade. As a member of the WTO and OECD, Mexico's financial market has performed well in recent years, with interest rates gradually decreasing, currency markets stabilizing, public finances achieving balance, and a surplus. At the same time, Mexico's foreign trade has significantly increased, its foreign exchange reserves have significantly increased, and it has established dual information exchange agreements with over 40 countries worldwide. Therefore, registering a company in Mexico has good investment value.
So, what are the advantages that we should pay attention to when registering local Mexican companies?
「 Free trade 」
Mexico is a country full of business opportunities, with almost every industry having local companies conducting business. Mexico has a free market and no restrictions on foreign exchange controls or import and export controls, providing a good business environment for enterprises. In addition, Mexico's exchange rate also has certain advantages.
「 Tax rate advantage 」
As the second largest economy in Latin America, Mexico imports a large amount of goods from countries such as the United States and China. Smartphones, furniture, electrical appliances, building materials and other products are the main trading varieties. At the same time, Mexico has also provided duty-free advantages for enterprises through the North American Free Trade Agreement (NAFTA), which has led many multinational companies to choose to establish factories in Mexico and export to the North American market. Famous companies such as Samsung and Foxconn have already established production bases in Mexico.
「 Clear advantages of cross-border e-commerce 」
Opening local stores on Amazon, Wal Mart, Mercado and other platforms is also an effective way of sales. By setting up stores on these platforms, enterprises can enjoy benefits such as preferential local store traffic and policy support, helping them expand sales scale and enhance competitiveness.
1.What types of Mexican companies are there?
SOCIEDADANONIMA DE CAPITAL VARIABLE is a common type of company suitable for various fields such as trade, commerce, import and export, and catering. It requires at least two partners and does not specify the proportion of partners' shares. This type of company can choose to float and its registered capital can be flexibly adjusted, also known as a variable registered capital joint-stock company.
SOCIEDAD DERESPONSABILIDAD LIMITED is a type of company that is not allowed to go public and is usually suitable for small businesses.
SOCIEDAD CIVIL is a type of company that cannot engage in commercial activities and mainly provides services such as law firms and accounting firms.
ASOCIACION CIVIL, similar to foundations and other institutions, can only engage in social welfare undertakings and requires government approval.
Private aid institutions (INSTITUTION YASISTENCIAPRIVADA) are similar to civil associations in that they only need to register without government approval.
SOCIEDAD COOPERATIVA is an organizational form of employee cooperation.
Therefore, for sellers engaged in cross-border e-commerce, registering a joint-stock company is the most suitable choice. Amber Global Finance has rich experience in the field of cross-border e-commerce. We provide Mexican local company registration services for sellers and can provide legal representatives to assist Mexican local companies in bookkeeping, tax reporting, opening bank accounts, and other services, providing strong support for enterprises to succeed in the Latin American market.
2.Matters related to the registration of local companies in Mexico
Select registration location:
When registering a company in Mexico, you can choose a registration location that is different from the actual business address, which will not affect the company's use and development.
Registration time:
Normally, the registration time for Mexican companies takes 30 to 60 working days.
Minimum registered capital:
The minimum registered capital of a Mexican company is 50000 pesos, and there is no need for capital verification.
Shareholders' requirements:
When registering a SA (limited liability company) type company, at least two shareholders are required.
Legal Requirements:
The legal representative must be Mexican and have a local tax number. If there is no local tax number, we can provide corresponding services.
Company name requirements:
When verifying names, please provide three to five new company names in case some names cannot be used. Generally speaking, there are no special restrictions on the name of a Mexican company, but the words "S.de.RL.de.CV" (abbreviation for limited liability company) are usually used at the end. It can be named in English or Spanish.
3.Registration steps
- Approved Name
Select 3-5 potential Mexican company names and have them submitted for approval online to the Mexican Economic Department (SE) by a professional lawyer or notary public. The process typically takes one week.
- Formulating the company's articles of association
The partners reached a consensus on the company's goals, business areas, team responsibilities, and authorization, and notarized these contents at the notary office to establish the company's articles of association. The articles of association should cover: company name, business domain, organizational type, management terms, and investment time limit. This material is similar to the company's identification.
- Verify the actual controller
Starting from January 2022, in order to confirm the source of funds and prevent money laundering, notaries need to verify the actual controller of the company. This process is much more complex than before.
- Submit registration materials
After obtaining the notarized documents, send them together with the original signature form of the actual controller to a lawyer or notary in Mexico.
- Notarized Articles of Association
After receiving the above-mentioned original documents, the lawyer or notary shall handle the notarization according to the company's instructions. The date of notarization of the articles of association is the date of establishment of the company.
- Handling Business Registration
After notarizing the articles of association, you need to go to the Public Registry of Commerce and Property to complete the business registration, pay the fees, and obtain the registration documents (non license format).
- Conduct Tax Registration (SAT)
Tax registration requires an appointment, waiting approximately 1-2 months. When processing, it is necessary to provide the original water and electricity bill and lease agreement for the past two months. The tax registration is completed on the appointment day, obtaining the tax certificate, electronic signature, and password. The tax representative must be a person with a Mexican RFC tax number and personal electronic signature. Usually, in the initial stage, lawyers or accountants act as representatives.
- Foreign investment records
After completing the tax registration, the lawyer went to the Foreign Investment of National Registry to register the company. After the establishment of the company, quarterly and annual reports must be submitted to foreign-funded institutions according to the prescribed circumstances.
- Opening a bank account
After tax registration, enterprises can independently open bank accounts to ensure fund security. For Chinese sellers, CIBANCO and BASE Bank in Mexico have Chinese language employees, as well as the Mexican branch of Industrial and Commercial Bank of China.
