Since 2003, Healy Consultants Group has efficiently assisted our Clients with establishing their business in Mexico. Services provided by our Firm include i) consulting services to determine what is the best corporate structure for our Client ii) Mexico business registration and licensing (if required) iii) corporate bank account opening services iv) human resources strategies and v) assistance to find office, industrial and/or warehousing space.

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Mexico business setup summary

Press the link headings below to read detailed, relevant, up to date information.

• Benefits and problems

  Benefits of Mexico company registration

  

  1. Establishing a business in Mexico can be fast and easy with Healy Consultants Group because:
     • A Mexican LLC (SRL) can be registered within three weeks with only 2 shareholders and 1 director, who can be of any nationality. Our Clients will not be required to travel to complete the engagement;
     • There is no minimum paid-up capital required when incorporating a company. We however recommend our Clients to inject at least US$3,200 (MXN50,000) to maximize the chances of application approval by the Mexican Public Registry of Commerce;
     • There is no restriction on foreign investment capital and foreign entrepreneurs are permitted to hold all their company’s capital in US dollars rather than Mexican peso;
     • A Mexican entity also requires at least one representative to be resident in the country. For Clients who do not meet this minimum office holder requirement, our Firm provides professional passive nominee legal representative services;
     • To change a corporate structure and appoint a new director, personal travel is not required;
     • Foreign investments that do not exceed USD165 million but require Mexico government authorization are automatically approved unless the investment falls under a restricted sector.
  2. Our Clients looking to do business in Mexico stand to benefit from various advantages including:
     • Mexico has signed the most free trade agreements than any country in the world with at least 47 countries in North and Latin America, Europe and Asia which allows free flow of goods and services;
     • Under the North American Free Trade Agreement (NAFTA), US and Canada investors and entrepreneurs are permitted to settle and work in Mexico and import and export goods and services without much difficulty;
     • Mexico is home to one of the most sophisticated financial and industrial systems in the world with a large market of over 110 million people and a steadily growing middle class;
     • Low cost of operations including very competitive labour costs, at least 80% cheaper than the US, especially in the manufacturing industry where investors hire many local workers;
     • Additionally, the government offers an employment incentive of a credit equivalent to 100% of income tax corresponding to remunerations paid to employees with disability;
     • Rents for office space in Mexico City average US$22 per month per square meter. Industrial space costs are much below this level, especially in the Maquiladoras (EPZ companies). Electricity is also cheaply available in Mexico with average rate for industries being US$0.06 per Kwh.
  3. Our Clients establishing a subsidiary in Mexico will enjoy certain government grants and tax incentives including:
     • Reduction or waiver of withholding tax on dividends distributed to non-resident companies if the foreign subsidiary or parent company is located in one of the 60 countries which have signed a DTA with Mexico;
     • 100% exemption from withholding tax on dividends from one Mexican company to another resident legal entity;
     • Absence of import or export customs levied by the Mexican government on foreign goods/services;
     • The Mexican government offers businesses incentives including i) grants, loans and bank guarantees at the state level and ii) R & D investment grants at the federal level;
     • The Mexican government does not impose exchange controls and foreign entrepreneurs are permitted to freely convert Mexican peso into foreign currency without restrictions.
  4. Manufacturing and trading entities that are incorporated in Mexico under the IMMEX Maquiladora tax regime are entitled to several benefits such as:
     • Full exemption from paying of all applicable taxes and custom duties, including: i) service special tax; ii) import/export customs duties; and iii) VAT;
     • Entitlement to transfer pricing reliefs for Maquiladoras with bonded warehouse facilities;
     • Businesses are not legally required to have a permanent establishment in Mexico.

  Problems of Mexico company registration

  1. Doing business in Mexico can be challenging to foreign individuals because:
     • Mexico has a weak legal system. While contracts are generally upheld, courts are inefficient and vulnerable to political interference, leading to unjust decisions in business dealings;
     • Mexico suffers from a high corruption, being ranked the 138^th least corrupt country in the world in the 2018 Corruption Perception Index by Transparency International;
     • Mexico City, the main business hub in Mexico, is considerably more dangerous than most Western cities. The country also leads in manslaughter convictions annually than any other country in the world;
     • While electricity is relatively cheap in Mexico, getting electricity for a new building is time-consuming and expensive. Entrepreneurs can expect to wait 3 months and pay US$35,000 if the building requires new electrical line to be laid;
     • The costs associated with trading across borders in Mexico is much higher than the average costs in South America region and the Caribbean due to the lucrative cross-border trading brought about by the free trade agreements.
  2. Other considerations and certain impediments to doing business in Mexico include:
     • High tax rates including i) a standard corporate tax rate of 30% ii) personal income tax rates of up to 35% and iii) Value Added Tax rate of 16%;
     • Registering a company in Mexico can be challenging without any professional help because company registration in the country is decentralized and each major Mexican city has its own regulations and procedures for business setup;
     • Non-Spanish-speaking entrepreneurs may experience communication barrier working with local suppliers and customers. Mexico is ranked 43^rd out of 72 countries in the English Proficiency Index, indicating a low standard of spoken English;
     • Paying taxes can be a time-consuming exercise in Mexico taking up to over 240 business hours per year with payment of corporate tax alone taking at least 100 hours. VAT filings can also take several hours to process.
     • Mexico is still fighting against the problem of drug cartels which contributes to high levels of violence and political instability in the country. Moreover, the rate of homicides has increased by 16% in 2018 with its main dangerous states being Baja California and Colima. This negatively impacts the businesses there by:
       • preventing complex economic activities from commencing;
       • affecting the daily schedule of local workers and entrepreneurs; and
       • slowing down the government proceedings.

• Best uses for a Mexico company

  Mexico is an excellent place to form a company, especially a manufacturing and distribution one, because:

  • Mexico has become a major manufacturing base thanks to the country’s open borders and trade policies. Consequently, the country has a strong connection to large consumer markets in South and North America;
  • Mexico has created over one hundred of export processing zones (EPZs, locally known as maquiladoras) that offer many tax incentives, including i) exemption from import/export tax, ii) reduced or no corporate tax and iii) exemption from VAT. Mexican EPZ companies are a popular option for entrepreneurs willing to manufacture and export products;
  • Maquiladoras can also benefit from the country’s free trade agreement with the United States and Canada (NAFTA) to export their products and services to these countries without paying any customs duty. The agreement also reduces red tape associated with exporting to these countries. Also, the direct exporters of Maquiladoras get preferential support from the Foreign Trade Bank for loan guarantees and financial assistance;
  • Companies conducting Research & Development in Mexico are entitled to a 30% tax credit for its R&D expenses;
  • Starting a business in Mexico is attractive for the movie and theatre production industry since they are entitled to an immediate tax credit that is applicable to a maximum of 10% of the total income tax of the previous year.

Trust registration questionnaire

To determine the right jurisdiction to register a legally tax exempt international trust, kindly complete the 5-minute questionnaire below. Your data will remain confidential and will not be sold to third-parties.

Within 3 hours thereafter, one of our in-house senior consultants will ring you to discuss the business goals you are trying to achieve by setting up a trust:

• How can we help you?
  

  Why are you looking to register a trust?
  
  In what country do you prefer trust registration?*
  —Please choose an option—I am not sureI need adviceAfghanistanAlbaniaAlgeriaAmerican SamoaAndorraAngolaAnguillaAntigua and BarbudaArgentinaArmeniaArmeniaArubaAustraliaAustriaAzerbaijanAzerbaijanBahamasBahrainBangladeshBarbadosBelarusBelgiumBelizeBeninBermudaBhutanBoliviaBonaireBosnia and HerzegovinaBotswanaBouvet Island (Bouvetoya)BrazilBritish Indian Ocean Territory (Chagos Archipelago)British Virgin IslandsBrunei DarussalamBulgariaBurkina FasoBurundiCambodiaCameroonCanadaCape VerdeCayman IslandsCentral African RepublicChadChileChinaChristmas IslandCocos (Keeling) IslandsColombiaComorosCongoCongoCook IslandsCosta RicaCote d'IvoireCroatiaCubaCuraçaoCyprusCyprusCzech RepublicDenmarkDjiboutiDominicaDominican RepublicEcuadorEgyptEl SalvadorEquatorial GuineaEritreaEstoniaEthiopiaFalkland Islands (Malvinas)Faroe IslandsFijiFinlandFranceFrench GuianaFrench PolynesiaFrench Southern TerritoriesGabonGambiaGeorgiaGeorgiaGermanyGhanaGibraltarGreeceGreenlandGrenadaGuadeloupeGuamGuatemalaGuernseyGuineaGuinea-BissauGuyanaHaitiHeard Island and McDonald IslandsHoly See (Vatican City State)HondurasHong KongHungaryIcelandIndiaIndonesiaIranIraqIrelandIsle of ManIsraelItalyJamaicaJapanJerseyJordanKazakhstanKazakhstanKenyaKiribatiKoreaKoreaKuwaitKyrgyz RepublicLao People's Democratic RepublicLatviaLebanonLesothoLiberiaLibyan Arab JamahiriyaLiechtensteinLithuaniaLuxembourgMacaoMacedoniaMadagascarMalawiMalaysiaMaldivesMaliMaltaMarshall IslandsMartiniqueMauritaniaMauritiusMayotteMexicoMicronesiaMoldovaMonacoMongoliaMontenegroMontserratMoroccoMozambiqueMyanmarNamibiaNauruNepalNetherlandsNetherlands AntillesNew CaledoniaNew ZealandNicaraguaNigerNigeriaNiueNorfolk IslandNorthern Mariana IslandsNorwayOmanPakistanPalauPalestinian TerritoryPanamaPapua New GuineaParaguayPeruPhilippinesPitcairn IslandsPolandPortugalPuerto RicoQatarReunionRomaniaRussian FederationRwandaSaint BarthelemySaint HelenaSaint Kitts and NevisSaint LuciaSaint MartinSaint Pierre and MiquelonSaint Vincent and the GrenadinesSamoaSan MarinoSao Tome and PrincipeSaudi ArabiaSenegalSerbiaSeychellesSierra LeoneSingaporeSint Maarten (Netherlands)Slovakia (Slovak Republic)SloveniaSolomon IslandsSomaliaSouth AfricaSouth Georgia & S. Sandwich IslandsSpainSri LankaSudanSurinameSvalbard & Jan Mayen IslandsSwazilandSwedenSwitzerlandSyrian Arab RepublicTaiwanTajikistanTanzaniaThailandTimor-LesteTogoTokelauTongaTrinidad and TobagoTunisiaTurkeyTurkeyTurkmenistanTurks and Caicos IslandsTuvaluU.S. Virgin IslandsU.S. Minor Outlying IslandsUgandaUkraineUnited Arab EmiratesUnited KingdomUnited StatesUruguayUzbekistanVanuatuVenezuelaVietnamWallis and FutunaWestern SaharaYemenZambiaZimbabwe
  What type of trust do you wish to register (e.g. property management trust, family asset management trust, asset protection trust)?*
  
  What type of assets will you hold in the new trust?
  
  What is the total US$ value of the assets will you manage through the new trust?
  
  Do you want a highly or lightly regulated trust?
  
  Is confidentiality important for you?
  —Please choose an option—YesNo
  Did you already receive lawyer or accountant advise regarding trust registration considerations?
  —Please choose an option—YesNo
  Do you need our Firm to supply succession or tax planning advice before we register the trust?
  —Please choose an option—YesNo
  Do you require Healy Consultants to supply you with licensed trustee service?
  —Please choose an option—YesNo
  By what date does your Firm need the Trust to be registered?
  
  In what country do you require trust bank account opening?
  —Please choose an option—I am not sureI need adviceI do not need a trust bank accountAfghanistanAlbaniaAlgeriaAmerican SamoaAndorraAngolaAnguillaAntigua and BarbudaArgentinaArmeniaArmeniaArubaAustraliaAustriaAzerbaijanAzerbaijanBahamasBahrainBangladeshBarbadosBelarusBelgiumBelizeBeninBermudaBhutanBoliviaBonaireBosnia and HerzegovinaBotswanaBouvet Island (Bouvetoya)BrazilBritish Indian Ocean Territory (Chagos Archipelago)British Virgin IslandsBrunei DarussalamBulgariaBurkina FasoBurundiCambodiaCameroonCanadaCape VerdeCayman IslandsCentral African RepublicChadChileChinaChristmas IslandCocos (Keeling) IslandsColombiaComorosCongoCongoCook IslandsCosta RicaCote d'IvoireCroatiaCubaCuraçaoCyprusCyprusCzech RepublicDenmarkDjiboutiDominicaDominican RepublicEcuadorEgyptEl SalvadorEquatorial GuineaEritreaEstoniaEthiopiaFalkland Islands (Malvinas)Faroe IslandsFijiFinlandFranceFrench GuianaFrench PolynesiaFrench Southern TerritoriesGabonGambiaGeorgiaGeorgiaGermanyGhanaGibraltarGreeceGreenlandGrenadaGuadeloupeGuamGuatemalaGuernseyGuineaGuinea-BissauGuyanaHaitiHeard Island and McDonald IslandsHoly See (Vatican City State)HondurasHong KongHungaryIcelandIndiaIndonesiaIranIraqIrelandIsle of ManIsraelItalyJamaicaJapanJerseyJordanKazakhstanKazakhstanKenyaKiribatiKoreaKoreaKuwaitKyrgyz RepublicLao People's Democratic RepublicLatviaLebanonLesothoLiberiaLibyan Arab JamahiriyaLiechtensteinLithuaniaLuxembourgMacaoMacedoniaMadagascarMalawiMalaysiaMaldivesMaliMaltaMarshall IslandsMartiniqueMauritaniaMauritiusMayotteMexicoMicronesiaMoldovaMonacoMongoliaMontenegroMontserratMoroccoMozambiqueMyanmarNamibiaNauruNepalNetherlandsNetherlands AntillesNew CaledoniaNew ZealandNicaraguaNigerNigeriaNiueNorfolk IslandNorthern Mariana IslandsNorwayOmanPakistanPalauPalestinian TerritoryPanamaPapua New GuineaParaguayPeruPhilippinesPitcairn IslandsPolandPortugalPuerto RicoQatarReunionRomaniaRussian FederationRwandaSaint BarthelemySaint HelenaSaint Kitts and NevisSaint LuciaSaint MartinSaint Pierre and MiquelonSaint Vincent and the GrenadinesSamoaSan MarinoSao Tome and PrincipeSaudi ArabiaSenegalSerbiaSeychellesSierra LeoneSingaporeSint Maarten (Netherlands)Slovakia (Slovak Republic)SloveniaSolomon IslandsSomaliaSouth AfricaSouth Georgia & S. Sandwich IslandsSpainSri LankaSudanSurinameSvalbard & Jan Mayen IslandsSwazilandSwedenSwitzerlandSyrian Arab RepublicTaiwanTajikistanTanzaniaThailandTimor-LesteTogoTokelauTongaTrinidad and TobagoTunisiaTurkeyTurkeyTurkmenistanTurks and Caicos IslandsTuvaluU.S. Virgin IslandsU.S. Minor Outlying IslandsUgandaUkraineUnited Arab EmiratesUnited KingdomUnited StatesUruguayUzbekistanVanuatuVenezuelaVietnamWallis and FutunaWestern SaharaYemenZambiaZimbabwe
  Place of residence of the trust settlors?
  
  Place of residence of the trust beneficiaries?
  
  What other services do you require from Healy Consultants Group?
  

• Tell us about your existing business
  

  Are you a corporate services provider representing a Client?
  —Please choose an option—YesNo
  Do you have an existing business?
  
  If yes, please confirm your business website address?
  
  What products and services does your existing company supply? Are any of these regulated?
  
  Which bank handles your current corporate and personal banking needs?
  

• Your preferences
  

  On what phone number/WhatsApp ID/Skype ID can our senior staff call you, and at what time and date?*
  
  To what email address can our staff email you at?*
  
  To what alternative email address can our staff email you at?*
  
  What is your name?*
  
  In what language do you prefer Healy Consultants Group to communicate with you?
  
  What is your budget for setting up the trust with Healy Consultants Group?*
  

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