Founding company

Wir helfen Ihnen bei der Registrierung Ihres Unternehmens in Mexiko, bei der Eröffnung von Bankkonten oder bei administrativen Aufgaben wie Versicherungen oder Sozialversicherungen.

1. Founding a company

The registriation process of a company can be very complicated as it is decentralized and each region has its own procedures and regulations for a business setup.

The good news already ahead; any foreigner can own 100% of a Mexican corporation and open their business in Mexico. Mexico’s legal system and tax laws for businesses do not discriminate between foreigner business or Mexican National owned businesses.

 

However registering a company in Mexico can be challenging without any professional help as the company registration is decentralized and each region has its own procedures and regulations for a business setup. Mexpansion will assist you in the whole founding process.

When starting up a business in Mexico, you can gain the following advantages, regardless of how small or big the company is:

  1. 100% Foreign Ownership
  2.  No Capital Controls for Repatriation of Profits
  3. Foreigners can establish a Limited Liability Company
  4. Strong Property Rights and Protection
  5. No established Initial Capital Requirements

In addition, you need at least one representative to be resident in Mexico. If you cannot meet this requirement, Mexpansion provides you a professional passive nominee legal representative.

The registriation process of a company can be very complicated as it is decentralized and each region has its own procedures and regulations for a business setup.

support to found your company in mexico

It is vital to speak Spanish when you found the company as many people in the public sector do not speak English - WE speak fluent Spanish, English and German.

we speak spanish
we speak english
we speak german

2. Registration Process of a company

The government cost to start your business is around $1200. LLC is the most suitable for carrying out all sort of activities and services as they require low initial capital and can be fully foreign-owned.

The registration in Mexico is a 8-step process. incorporating a company in Mexico as a foreigner can take up to 5 months. As we are locally present, we will take charge to execute that.

3. Local presence in Mexico

With our network in Mexico and local availability, we assist you with all the administrative formalities and ensure that you will comply with them.

Assist to find the best locationYou need from the begin someone to receive business — and personal — mail and to deal with other business matters. It is almost impossible to set up a European based company abroad without having a physical presence in Mexico at place.

Most states require you to have a registered agent, someone who can receive legal documents, and this person needs to have a physical address in Mexico. We will guide you in that or execute all the tasks if necessary.

you need more information how to found and run your company in Mexico?

Get in touch with us and we will discuss in a meeting how to successfully establish your company in Mexico!

Contact Us

you need more information how to found and run your company in Mexico?

Get in touch with us and we will discuss in a meeting how to successfully establish your company in Mexico!

Contact Us

4. Set up Banking and Financial Matters

Mexican corporate banking provide several services such as internet banking, debit, and credit cards or savings accounts. It takes around 7 weeks to obtain approval for a corporate bank account.

Banking in non-European countries has become more difficult with new laws to curtail money laundering and also to prevent tax evasion by keeping money overseas.

One way to handle foreign business transactions to and from Mexico is to find a large Mexican bank that deals with these transactions every day. In addition, the bank will probably request a bank signatory when you want to form a business. We will assist you to open the accounts and ensure a smooth process in that.

Currency differences

If you anticipate exporting or importing goods from or to a country, we have to be aware of currency differences, and take measures to eliminate exchange risk where possible. This requires that we remain aware of constantly changing exchange rates.

The foreign exchange market can be extremely volatile, and if we do not pay attention, revenues can quickly evaporate as money is converted between currencies. In many cases, there are also exorbitant fees and have to wait several days for the money to clear and become available in the account.

Apart from that, we obviously need a cashflow to execute all operations and pay wages, debts, rents, energy, insurances, etc. With our network, we ensure connections to trustful, local banks.

5. Insurances

Whether for employees, warehouses, or your transportation, it is important to have a reliable partner when there are any accidents or problems.

We will help you to find the right partner who are experts in those matters.

6. Social Security and Medicare Taxes

The foreign tax exclusion described above doesn’t include self-employment taxes (Social Security and Medicare taxes on your business profits). You must still pay these taxes.

If your foreign income comes from an employer, you may be able to get an exemption from withholding this foreign earned income, if you are eligible for the exclusion.

5. Insurances

Whether for employees, warehouses, or your transportation, it is important to have a reliable partner when there are any accidents or problems.

We will help you to find the right partner who are experts in those matters.

6. Social Security and Medicare Taxes

The foreign tax exclusion described above doesn’t include self-employment taxes (Social Security and Medicare taxes on your business profits). You must still pay these taxes.

If your foreign income comes from an employer, you may be able to get an exemption from withholding this foreign earned income, if you are eligible for the exclusion.

7. Tax responsibilities

Paying taxes is a time consuming task and can take up to 240 business hours per year in Mexico. VAT filings is also a process which takes several hours to process.

complex tax system

Where do I have to pay taxes? Only in my home country? Or only in Mexico? Or in both countries? We will provide contact to people who are knowledgeable about tax issues and reporting for ex-patriots. If it gets complicated, it is important to know someone who can stand by side to fix it.

All roads lead to taxation, so choose the structure that will allow you to comply with local regulations while minimizing your tax liability. This is a critical area—one with a lot of risk and complexity. Paying taxes is a time consuming task and can take up to 240 business hours per year in Mexico. VAT filings is also a process which takes several hours to process.

 

Paying taxes is a time consuming task and can take up to 240 business hours per year in Mexico. VAT filings is also a process which takes several hours to process.

complex tax system