Understand the Jurisdictions Setup Requirement Before Proceed Your Company Registration in Mexico
Register your business in Mexico in less than four weeks. For clients big and small, 3E Accounting makes the tedious process of company registration in Mexico simple, fast and straightforward. We have a competent team of business consultants, attorneys, accountants and tax experts. They can advise on any aspect of business formation in Mexico. Instead of going it all alone, use our professional help to avoid the pitfalls. You may have your entity up and running as soon as possible.
About Company Formation in Mexico
Company registration in Mexico would have been a simple affair were it not for the need for investors to adapt to the cultural differences as well as the government regulations. You should be aware that Mexico has a total of 31 states, and there is a considerable disparity in how these states are governed. Due to these, and other challenges, working with a reputable corporate service provider is the best way to go about registering any business entity in Mexico.
Why Start a Company in Mexico
There are several benefits that foreigners stand to gain with Mexico company formation. They include but are not limited to the things mentioned below:
- Efficient registration process – Though the incorporation process is detailed, it is straightforward. Thus, it is possible to complete everything and have a fully functional company in less than three weeks.
- No minimum capital requirement – There is no actual capital requirement for incorporation in Mexico. However, companies normally declare $3,000 as the capital value at the time of incorporation.
- Free market – There are no limitations to what markets foreigners can do business in Mexico. They are free to join and operate in any industry.
- No withholding tax on dividends – Foreign dividends don’t attract any withholding tax in Mexico. Well, it is the government’s way of encouraging more foreign investment in the country.
- No controls on imports and exports – in Mexico, the government doesn’t impose any controls on exports and imports by foreigners on goods or services.
Common Types of Business Entities in Mexico
The following are the business entities which investors considering company registration in Mexico may consider:
Limited Liability Stock Corporation – Sociedad Annima, SA
A limited liability stock corporation must have at least two shareholders and minimum share capital of 50,000 pesos at the time of incorporation.
Limited Liability Company
Also known as – Sociedad de Responsabilidad Limitada, limited liability company in Mexico is the equivalent of a closed corporation in the United States. For its incorporation, there has to be a minimum of two and a maximum of 50 partners, with a minimum capital of 3,000 pesos.
Civil Enterprise – Sociedad Civil, SC
With a civil enterprise in Mexico, there is no minimum capital requirements and no limit on the number of partners. However, every partner will be jointly personally liable for the liabilities of the entity. It is the most preferred business entity for lawyers and accountants in Mexico.
Branch – Sucursal
Foreign companies may open branches in Mexico if they get approval from the National Commission on Foreign Investment and the Secretariat of Foreign Affairs. The branch must also get registration with the Public Registry of Commerce before it can start operations.
A subsidiary is another option for company registration in Mexico, and unlike branches, it is a separate legal entity from the parent company. Its liabilities and obligations are completely separate from those of the parent company.
Work With Us
In Mexico, Limited Liability Stock Corporation is the most common form of business entity. The foreign investors who want a company registration in Mexico use it. Contact 3E Accounting today if you need any assistance in registering any of the above legal entities. With us, you will get a chance to incorporate without travelling to Mexico, get the services of bilingual staff, and get help with human resource and employee recruitment. Contact us for more details.