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10 Reasons Foreigners Should Consider Forming a Mexican Corporation


Foreign individuals looking to invest and do business in Mexico will do so through the incorporation of a Mexican company. If you are ready to relocate to Mexico but not quite ready to retire, read on to learn 10 reasons why creating a Mexican Corporation may be the right choice for your investment.  

  1. A Mexican Corporation has legal rights as if it was Mexican entity to acquire property anywhere in Mexico, including real estate within the restricted zone 100 km of the border or 50 km from the coast.
  2. No need for a bank trust, Fideicomiso.
  3. A Mexican corporation may be 100% owned by foreigners.
  4. Investors may choose to purchase property through a corporation with the intent of using the property as a vacation rental, investment or buying and developing the property.
  5. The corporation has the potential to be a very lucrative venture by legally renting out prime vacation property.
  6. Owning property through a Mexican corporation means you no longer need to inform the bank of changes to the property, for instance, renting it out, renovations or selling the property.
  7. There is no limit to how many properties a Mexican Corporation may own.
  8. Under the corporation you may operate a business, whether you work from home, operate a B&B, retail, food and beverage or import and exporting.
  9. Consider semi-retiring in Mexico while still earning an income, start a business and receive dividends and tax advantages from your corporation.
  10. Investing in Mexico, provides financial data to aid in residence visa requirements.

The main entities in Mexican business are Sociedad de Responsabilidad Limitada similar to a Limited Liability Company and Sociedad Anónima which is similar to a US corporation.

To set up a business in Mexico, you need to hire a full-service Mexican Law Firm who will guide you and your company through incorporation, advising you on the best solutions for your investment.  Your attorney will determine the best corporate accounting and tax structures for your business.

The law firm should offer all services required by a business in Mexico, including accounting and compliance consulting, trademarks, and import and export tax rebates and more to help you succeed.

Consult the experts at MEXLAW to find out if forming a Mexican Corporation will be beneficial to you.