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Creation of a Mexican company: When it is convenient to establish one

When operating a business in Mexico as a foreigner, various legal and tax considerations must be considered. These considerations depend on the type of business to be developed, its structure, and its financing. Establishing a Mexican company may be the most suitable way to conduct these activities because it has its own legal personality and a Federal Taxpayer Registry (tax identification number in Mexico) to fulfill tax obligations. Given the various types of companies in Mexico, one can choose the structure that best suits the business, whether family-owned or involving multiple investors. 

Can a foreign company be a partner in a Mexican company? What documents do I need? 

Yes, it is possible for a foreign company to be a partner in a Mexican company. However, certain documentation is required to validate its existence in accordance with current national and international regulations. This documentation includes the company’s bylaws, operational agreements designating directors and shareholders or partners, and a document verifying its tax identification number in its country of origin. For individuals who are shareholders or partners, a valid passport, tax identification number, and, if applicable, a marriage certificate and general information about their spouse are required. Shareholders or partners of the Mexican corporation can be foreigners with or without residency, the legal representative must be considered a tax resident in Mexico, hold a Taxpayer Identification Number (RFC), and must provide this information. 

Sometimes, clients question the need for certain documents or personal information. However, all information requested for the creation and/or association of a Mexican corporation is part of international agreements aimed at preventing the financing of illicit activities. In our upcoming blog, we will delve into this topic to provide a thorough understanding of the reasons and justifications behind this request for information. 

What do I need to start operating?

For an entity to commence its activities, it must have the necessary registrations with the Servicio de Administración Tributaria (the Federal Tax Administration in Mexico) and the Public Registry of Commerce, as well as the permits and licenses that may be required by the municipal, state, or federal government, depending on the nature of the business.

For more information to start the process of creating a corporation in Mexico, our expert Corporate lawyers will be happy to assist you in answering any questions and efficiently beginning the incorporation process.