Mexico is considered to be one of the largest and most powerful economies around the globe and is predicted 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 aplenty. This list of facilities includes top-of-the-line aerospace located in Queretaro and a myriad of automotive manufacturing plants scattered throughout the country, which 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 production (GDP) at $1.27 trillion by the year 2019 (all figures are in dollars), Mexico represents a important marketplace within Latin America. Its proximity to its neighbors in the United States and its access to both Pacific and Atlantic Oceans makes Mexico an ideal trading hub. Numerous Free Trade Agreements (FTAs) are in place with regional and national associations major markets around the world put it in the position of the 17th largest exporter in the world. Mexico’s top export goods include vehicles, computers and petroleum products medical equipment, fresh fruits and vegetables. Even if Mexico exports to other markets, such as Canada, China, Germany and Japan More than the three quarters Mexican exports go for America. United States.
If you’re considering starting a business in Mexico’s huge and expanding market take a look at this article to find out more about incorporating an office in Mexico or talk for us right now to discuss ways to get into the market.
How to start a business in Mexico?
Mexico Stock Corporation Mexican Stock Corporation
Like any other country, Mexico has a number of corporate structures that serve slightly different functions. The most well-known is one called the Stock Corporation, or S.A. de C.V (Sociedad Anonima de Capital Variable) because it offers the best opportunity for expansion and has an extremely simple process of formation to understand. Learn more about the most important information you need to learn to establish your own 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 permitted
Does the company have the ability to sponsor employees from abroad?
Yes!
Are there capital control laws?
No
Do you have a minimum share capital?
No
Is there a minimum number of shares?
At minimum (2) shareholders
Do you need a financial address or legal representation necessary?
Yes!
How long will the process will take (including setting up a 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
The company must be registered with the local authorities
Create an account at a bank for a company
The capital needed to allow the bank account of the company to be activated. account.
Incorporate the business in the Registry of Foreign Investment
The company must be registered through the 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 represents the sum of money (cash or other) that shareholders subscribe to when you incorporate a firm in Mexico. Share capital is crucial and is essential when you apply for loans, joining joint ventures, or bidding on the national, state or local government contracts. The amount of share capital could affect the business’s ability to receive loans. A local legal entity that has large share capital will stand a better likelihood of receiving loans than a company that has a lower share capital.
Note that if there are debts owed by the company, its share capital could be in danger. Share capital can be decreased or increased at any time during company’s business, but the share capital must be a figure that is representative of the size of the business and its activities.
In the majority of cases, 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 Company Legal Representative functions in the role of being an “legal persona” of the company. It is the person who has to be the person who signs for all business operations and, in turn, has the legal responsibility of ensuring that the company is operating properly according to the local laws. The person must be an Mexican citizen or a foreigner who legally lives in Mexico.
Address of the Company’s Fiscal/Legal Account
A fiscal or legal address is a legal requirement for legal entities that operate commercially in Mexico. The address is registered with the Mexican taxes authorities. It used for all official business communications 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 composed of people who collectively supervise the operations of a firm. In Mexico companies can decide to form an executive board or a single director each of which could be foreign individuals.All businesses are required to organize an annual general meeting (AGM). The AGM can’t be conducted in a virtual manner or remotely held However, the company can choose to use the option of a proxy (an legal person who is competent to perform the duties of an individual).
The Little Red Journal Business Pages