Yet starting business in Mexico can be a thrilling opportunity, careful preparation and research are necessary to ensure a successful launch. Consider hiring a regional lawyer or consultant like Ongresso to be on the safe side. We can assist you in the procedure and guarantee adherence to applicable regulations and legislation in Mexico.
Here is a guideline to form business in Mexico:
1. Determine a Business Idea
Finding a workable business concept that satisfies the demands of the local market is the first step within launching a business in Mexico. Conduct market research in order to assess the level of demand for the products or services you offer and to evaluate the competition.
2. Select a Legal Structure
After deciding on a business concept, you must select a legal framework for your company. The two types of legal entities that are most prevalent in Mexico are the Sociedad Anonima and the Sociedad Responsabilidad Limitada. The Sociedad Anonima, resembles to the U.S. Corporation (Corp.), and the Sociedad Responsabilidad Limitada, resembles to the U.S. Limited Liability Company (LLC).
3. Appoint a Dependable Legal Representative
All businesses that are legitimately registered in Mexico are required to name a legal representative. This person will be in charge of representing the company before governmental bodies and signing legal documents to conduct business with partners and clients. It is important taking into account that this person must reside in Mexico.
4. Choose a Name
Verify that the name you select is legitimately accessible. To make sure that the name you intend to use has not already been registered by another party, perform a search on the website of the Mexican Intellectual Property Office.
5. Register your Company
The Mexican government requires that you register your company. Through the Mexican Ministry of Economy, you can do this. A number of documents, including the business plan, a proof of address, and proofs of identity like the RFC (necessary for taxation), will be required.
6. Set up Accounting and Tax Systems
To ensure compliance with Mexican rules and regulations, it is crucial to set up accounting and tax systems correctly. Ongresso can help you corresponding the legal regulations.
7. Open a Bank Account
In order to participate at business transactions, it is necessary to open a business bank account.
8. Hire Employees
Employers who intend to do so must register with the Mexican Social Security Institute (IMSS) and get a Tax ID Number (RFC) before they may begin hiring staff. Additionally, you must abide by the complex labor laws of Mexico. Read our Blog about Labor Laws in Mexico here.
As a result, founding a company in Mexico requires important steps. Complying labor laws, tax regulations and take insurances are crucial for a correctly established company. Additionally, factors like the business’ location selection and the office rental process need to be carefully considered.