Incorporation of a company in Mexico

Company formation in Mexico ranges from the approval of the company name to the opening of the bank account. Experienced tax advisors, lawyers and notaries perform the company formation in Mexico and ensure that the structure meets the regulatory requirements. The following steps are part of a company incorporation in Mexico.

1. Approval on the use of the name before the incorporation of the company in Mexico.

The first step in establishing a company in Mexico is to clarify the name. You will receive authorization from the Ministry of Economy to use the name. For this purpose, the Ministry verifies that there is no other company with the same name. If you want to do this online, you will need your electronic signature.

2. Draw up articles of association and notarization for company incorporation in Mexico

In the second step, the formation of a company in Mexico requires articles of association that are suitable for the project. Together with our lawyers and a notary, we will draw up the articles of association for you. This document, which must be signed by all shareholders, defines the general and specific legal aspects of the company (e.g. corporate purpose, share capital and rules of procedure).

3. Notification on the use of the company name after the company incorporation.

The next step in the incorporation of a company in Mexico is to prepare a notice of the use of the company name. The notary public who established the company notifies the Ministry of Economy of the data of the people who have joined together to form the new company, as well as the name they will use so that it is not used by other people.

4. Registration of the company incorporated in Mexico in the Public Registry of Commerce.

After the incorporation of the company by our Mexican notary of trust, the registration in the public commercial register takes place. For the registration fees have to be paid, which vary depending on the state.

5. Registration of the company in the federal taxpayer register

The next important step in the process of establishing a company in Mexico is registration in the Federal Taxpayer Registry. This procedure is carried out before the Tax Administration Service SAT and identifies the company as a legal entity. As part of the registration of the company in the Mexican Taxpayer Registry, the tax number, known as the RFC, is then assigned.

6. Registration of the Mexican company with the Mexican Social Security (IMSS)

In the course of establishing a company in Mexico, registration with the Mexican Social Security (IMSS) also takes place. Even if only the founding partners work in the company at the beginning, registration with the Mexican Social Security Institute is required to report the hiring of personnel.

7. Registration of the company in the RNIE

Under Mexican law, companies with foreign equity investments must register with the National Registry of Foreign Investments (RNIE). In addition, companies with very large equity investments must submit annual financial reports to the RNIE.

8. Further filings after the establishment of the company in Mexico

Regardless of the immigration status of a foreigner, in Mexico you are usually allowed to sign the incorporation deed as a shareholder of the company. However, there are certain activities where participation is prohibited or restricted, so this issue should be carefully considered and monitored by professionals. For this reason, it is best to take this step in cooperation with experienced lawyers in Mexico.

The other entities with which you must register your business depend on the type of activity, the municipality and the state in which it is located. If you want to know how to incorporate a business in Mexico, contact us.

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In short, the incorporation of a company in Mexico requires a series of procedures that you cannot carry out alone. While it is possible to apply for the company name yourself, from this point on, the assistance of a specialized legal team is essential. The presence of the legal representative(s) of the company is also required for other necessary steps in the incorporation of a company or start-up in Mexico, such as the registration with the SAT or the registration with the IMSS.