Opening a business in Mexico is a popular choice among investors who see Latin America as an opportunity to grow their business. Low operating costs and easy access to massive markets like the US and Canada are reasons Mexico is ideal for your new business. Check out this guide to starting your business in Mexico.
Before you start thinking about opening a business in Mexico, you should consider the following:
- Identify business opportunities by engaging with a company formation service provider who can tell you what business and business opportunities are most feasible for your ideas. Also, it will give you information on how to avoid entering a saturated market.
- Entity type. Check which kind of business entity best suits your needs. Consider taxes and corporate requirements, as they may vary according to your business and the legal entity you decide on. Most Mexico companies choose between a Limited Liability Company (LLC)/Sociedad de Responsabilidad Limitada (SRL) and a Public Limited Company (PLC)/Sociedad Anónima (SA).
- Decide the main economic activity for your business. It allows you to become an expert in your industry. Local authorities require it.
- You must have a legal representative in Mexico. Legal companies in Mexico require a legal representative to oversee the organization before government entities. They will also sign legal documentation to carry out business transactions. This person must be a resident of Mexico.
- Hire a local tax advisor to help you with the tax requirements. This person will know the Mexican tax system and how to handle it.
Monthly, you should submit employees’ payroll and accounting records. Also, you must file the renewal of the commercial registry with the Undersecretariat of Industry, Commerce, and Competitiveness.
Now that you have taken all the considerations before opening a business in Mexico, you should follow these steps:
- Draft and sign a POA (Power of Attorney). In this case, your company’s legal representative must draft and sign a POA. This will give the person the ability to make decisions on your behalf.
- Set up the company’s bylaws, where you will need to describe your business purpose and functionalities. The bylaws must be notarized.
- Register your company with the local authorities, in this case, with the Public Registry of Property and Commerce. You must specify the real estate, commercial purposes, and goals.
- Obtain a tax ID number from the Tax Administration System (SAT).
- Open a corporate bank account. Your legal representative can take care of this.
- Make your initial investment and start working in the Mexican market.
Now that you want to open a business in Mexico, you should go there for a vacation and see how it is. You must obtain the Mexico Tourist Card and follow this country’s [health recommendations] for a smooth entry. iVisa can process the digital application and provide this travel document. Receive an email with your Tourist Card and present it at immigration. Mexico is all yours.