International entrepreneurs can open companies in Mexico in solid sectors such as manufacturing, automotive, electronics, agriculture, and many more. This article offers information about the company formation in Mexico and the tailored services we provide to foreign and local customers, highlighting the fact that our local specialists can deal with the procedures & regulations involved.
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Main types of companies you can set up in Mexico
Let’s explore some of the main business entities available in Mexico:
- the Stock Corporation (Sociedad Anónima (S.A.) is the most popular business entity in Mexico. This entity can be incorporated with a minimum share capital of MXN$50,000 (around USD 2,700).
- the limited liability company is the second most popular business structure in Mexico, which can be formed with a minimum share capital of MXN$3,000, representing around USD 160.
- the Simplified Shares Company is the third most popular business option in Mexico; it can be incorporated quickly and used by small and medium entrepreneurs.
- branches and subsidiaries are also available for incorporation in Mexico, mentioning that these structures must first have the approvals issued by the Ministry of Economy.
- the liaison/representative office in Mexico is suitable for foreign businesses that want to test the market first, without developing their activities.
- shelf companies are also available in Mexico. These ready-made companies can be easily purchased, allowing entrepreneurs to start their operations quickly.
As soon as you decide on the proper business structure, we invite you to discuss more about the company incorporation in Mexico with our experienced agents. We will gladly guide you throughout the formalities imposed and represent you with the relevant authorities.
How to open a stock corporation in Mexico, the most popular business entity
A stock corporation in Mexico can be set up respecting the following:
- the process starts with verifying and reserving the desired trade name. Approvals in this matter are issued by the Ministry of Economy;
- opening a stock corporation requires appointing a legal representative. International businessmen can be represented by our specialists in company formation in Mexico;
- the Articles and Memorandum of Association are the company’s main forming documents. These must be notarized before being registered with the Public Registry of Commerce in Mexico;
- a corporate bank account is needed for a stock corporation in Mexico. This is where the minimum share capital is deposited;
- obtaining the tax ID is mandatory for opening a company in Mexico, specifically a stock corporation. This is issued by the Tax Administration Service through its local offices/agencies.
These procedures are essential for company incorporation in Mexico. Recommend local entrepreneurs to get in touch with our experts to benefit from support in opening a business in Mexico in a fast and reliable way.
Taxation in Mexico
Here is some information about taxation in Mexico to keep in mind when opening a company in this country:
- 30% is the corporate income tax imposed on companies established in Mexico;
- 16% is the standard VAT rate in Mexico. This is known as the Goods & Services Tax (GST);
- the capital gains in Mexico are subject to a 10% income tax rate;
- in Mexico, there is a Special Tax on Production and Services (IEPS). This tax ranges between 3% and 53% and it is imposed on: tobacco, alcoholic beverages, gasoline, etc.;
- Customs duties range between 0% and 35%.
Ready for setting up a company in Mexico? You are invited to contact our specialists and ask for comprehensive services. Our customers can also enjoy personalized offers and budget-friendly company incorporation costs.