Mexico is considered to be among the top powerful economies in the world. It is expected to be the 7th biggest global power in 2050. If you are considering incorporating an organization in Mexico you’ll have possibilities to work in the most exciting and dynamic areas of development around the globe, with innovative and cutting-edge technology all over. This list of facilities includes top-of-the-line aerospace located in Queretaro as well as a multitude of automobile manufacturing facilities scattered across the country that has transformed Mexico’s automobile industry into one of the biggest of its kind in Latin America as well as an expanding medical supply Fintech, renewable energy and fintech sectors.

With the gross domestic product (GDP) of $1.27 trillion by the year 2019 (all numbers in dollars), Mexico represents a significant industry across Latin America. Its proximity to and the United States and its access to both Pacific and Atlantic Oceans makes Mexico an ideal trading hub. Numerous FTAs (FTAs) are in place with regional and national associations important markets across the world rank it as the 17th-largest exporter of the world. Mexico’s top export goods include vehicles, computers as well as petroleum oil medical equipment, fresh fruits and vegetables. Although the country may export to other markets, such as Canada, China, Germany and Japan over the three quarters Mexican exports are headed for America. United States.

If you’re considering starting a business in this huge and expanding market take a look at this article to find out more about how to incorporate an office in Mexico or talk to us today to discuss opportunities to enter the market.

How do you incorporate a company in Mexico?

Mexico Stock Corporation Mexican Stock Corporation

Like any other country, Mexico has a number of corporate structures that serve different purposes. Most popularly, one called the Stock Corporation, or S.A. de C.V (Sociedad Anonima de Capital Variable) which has the best opportunity for expansion and has an extremely simple process of formation to master. Find out the vital information you must learn to establish the S.A de C.V.

The S.A. de C.V. in a Snapshot:

Here’s some crucial details for incorporating a business in Mexico.

Is foreign ownership allowed?

Yes it is possible to have 100 percent foreign ownership is permissible

Can the company provide sponsorship to employees from abroad?

Yes!

Are there capital control laws?

No

Is there a minimum amount of share capital?

No

Is there a minimum size of shares?

There must be at minimum (2) shareholders

Do you need a financial address or legal representation needed?

Yes!

What is the time frame to create a new company in Mexico? will take (including an opening bank for corporate account)?

Between 6-8 weeks after we received all of the documents

What are the steps to incorporate your company in Mexico?

The company’s bylaws should be defined.
The formalization of incorporation Documents
Incorporate the business with the local authorities
Set up an account with a corporate bank
Make the necessary capital deposit to allow the bank account of the company to be activated. account.
Incorporate the business through the Registry of Foreign Investment
Incorporate the business by registering the company with Public Registry of Commerce
Find an Tax ID number

What else do you need to think about when incorporating a company in Mexico?

The capital of the company shares refers to the quantity of capital (cash or other) that shareholders subscribe to when you incorporate a firm in Mexico. The share capital is essential and important when you apply for loans, participating in joint ventures, or bidding for national, state or local government contracts. The worth of the share capital could affect the capacity of a company to get loans. A local legal entity that has large share capital will stand a better chance of getting loans than a company that has a lower share capital.

Note that if you are in debt to the company, its share capital could be in danger. Share capital can be decreased or increased at any time during the business’s operation, however the share capital must be a figure that is representative of the size of the company and its business activities.

Most businesses in Mexico start with shares capital that can be as high as USD$2,500.

Legal Representation of the Company Legal Representation

The Mexican Legal Representative of the Company acts to be an “legal representation” of the company and is the person who has to sign off on all company activities and, in turn, has the legal obligation to ensure that the company is operating properly within the framework of local laws. The person who is required to sign for the company must be an Mexican citizen or a foreigner who is legally resident in Mexico.

Address of the Company’s Fiscal/Legal Account

A legal or fiscal address is a mandatory legally required requirement for all legal entities who operate commercially in Mexico. The address will be registered with Mexican Tax authorities, and used to send official business correspondence like mailing and tax for tax purposes.

Mexican Corporate Accounts with a Bank

In order to incorporate a business in Mexico an account at a corporate bank must be established.

Corporate Governance Requirements

The term “board of directors” refers to a set of individuals who supervise the operations of a firm. In Mexico companies can select to have either a board of directors or one director, both of which are foreign individuals.All companies must organize an annual general meeting (AGM). The AGM is not able to be held in virtual form or remotely held However, the company can choose to use the option of a proxy (an legal person who is competent to represent an individual).

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