10 steps to incorporating in Mexico in 2023
Thanks to our Mexico business incorporation services, our Client will not have to travel to Mexico in order to start his company there. Our Firm will indeed complete all procedures on his behalf. Please refer to the standard timelines to complete the engagement, which is usually completed following the below steps:
- Before Healy Consultants Group starts to incorporate our Client’s company in Mexico, our Firm requests that he or she i) settles our fees requested to project-manage the engagement ii) signs and returns our engagement letter and iii) provides us scans of all the documents required for our due diligence checks. These steps are necessary for us to get an in-depth understanding of our Clients’ profile and of their expected operations in Mexico;
- When the above is completed, Healy Consultants Group assists our Client to decide on i) proposed company’s name and ii) the optimum corporate structure including directors and shareholders;
- Our project manager then drafts a detailed project plan for Mexico company formation and corporate bank account opening services in Mexico. This plan will list every step of Mexico business incorporation and corporate bank account opening and ensure that our Client is informed of expected timelines for its completion;
- Healy Consultants Group will then prepare a Power of Attorney (PoA) to be signed by our Client in presence of a Notary Public. We recommend drafting such PoA in both Spanish and English. This document is then legalized and sent back to our office, along with other (legalized and translated) corporate documents required for incorporating a company in Mexico;
- Healy Consultants Group will then contact the Foreign Investment Commission of Mexico to secure its approval for the company incorporation by foreigners. While the approval is usually easily granted, the procedure can take up to two months to complete. The investment of our foreign Client is then registered in the Mexican National Registrar of Foreign Investments;
- Healy Consultants Group will then i) get the application for registration of the Mexican company certified by a Mexican Notary Public and ii) submit it with the Business Registrar of the city of incorporation. Incorporation of the Mexican business is usually completed within a week;
POST INCORPORATION STEPS
- Healy Consultants Group will prepare a detailed quality business plan to secure a local multi-currency corporate bank account. Healy Consultants Group’s banking team will courier i) the complete quality bank account opening forms and ii) due diligence documents of all directors, shareholders and bank signatories to the bank. This can usually be completed within one month;
- Healy Consultants Group will fulfil compliance requirements by registering with the Mexican Social Security Institute (IMSS) and the local tax administration (SFGDF). We will also notify the government of the opening of the commencement of operations by the company;
- Healy Consultants Group can provide our Clients a Mexico business address for invoicing purposes. In addition, our previous Clients have requested other services including telephone, fax, and email support. See our Mexico virtual office services webpage for additional information on such services;
- Alternatively, Healy Consultants Group can assist Clients to find business premises in Mexico. We will also provide staff recruiting services. Following engagement completion, Healy Consultants Group will courier a full company kit to our Client, including original Mexico corporate documents, unopened bank correspondence and a Client feedback survey regarding the quality of our Mexico business incorporation services.
List of documents required for incorporation
Other than the standard personal and corporate due diligence documentation of our Clients, other documents required during a Mexico company incorporation process include:
- Notarized passport copy of the nominee resident legal representative;
- Power of Attorney granting powers to the resident legal representative to register the company on behalf of our Client;
- Copy of registration with the Public Register of Property and Commerce or notarized letter confirming the submission of the registration application;
- Copy of the lease agreement for the Mexican legal registered office address;
- Copy of tax registrations (RUT) issued by tax authorities, SAT, for the Mexican company and all of its directors.
Books to be maintained post incorporation
- Personal details of company’s shareholders;
- Minutes of shareholder meeting;
- Records of changes in Company’s share capital.
Post business setup considerations
After Mexico business setup, our Clients are immediately allowed to:
- Hire employees, sign legal contracts and make local and global sales;
- Sign a lease agreement for physical office premises and manufacturing or warehousing space;
- Receive and make transfers through their corporate bank account, by using internet banking services. If required by our Clients, Healy Consultants Group will assist to activate online banking facilities;
- Sponsor foreign staff for work permits. To optimize probability of work permit approval, we however recommend our Clients to i) pay up a capital of at least US$50,000 per employee sponsored and ii) to submit the application only after they can demonstrate they have local customers and local employees in Mexico;
- If they are planning to offer products and services which require a regulatory license, the company can also submit an application to the relevant regulatory authority. Healy Consultants Group can assist to determine requirements and thereafter secure the license.