Reason Why Mexico Company Formation is Profitable
Mexico’s economy is rising fast because of its convenient location as it acts as a buffer zone between North and South America. The reduced cost of production, excellent infrastructure and huge potential of the market with free trade agreements with 46 markets are attractive reasons for investors to set up a company in Mexico. The government has initiated foreign investors to conduct Mexico company formation.
The great land has a regime for investors from the United States of America named ‘’maquiladora’’. This happens where the US parent company and goods own the company. These exports go to America by paying export tariffs. The parent company can set up a company in Mexico by hiring employees, purchasing machinery and necessary equipment needed to carry out commercial activities in the Mexican company. The US corporation requires to obtain permits and is liable for the taxation system of Mexico. This regime is quite beneficial to US corporations as the skilled and low labor cost clubbed with logistics advantages can reap good business profits.
Steps for Mexico Company Formation You Should Undertake
The business registration process differs slightly between the different business entities which are functional in Mexico. The two essential business entities of Mexico are limited liability stock (requires capital) and limited liability company (without stock).
The procedural steps to set up a company in Mexico are:
- Choose a company name for your business. Obtain permission to use the same from the Ministry of Economy where you need to submit at least three names.
- Draft MoM and AoA according to the Commercial Laws and Securities Market Law.
- Submit the details of the company’s director, while submitting the company’s shareholders’ list to the Public Registry of Commerce.
- Set up an office in Mexico and provide the lease contract to the relevant authorities
- Obtain a tax identification number through relevant tax authorities
- Apply for other business licenses
All the companies set up in Mexico must file monthly tax returns. Meanwhile, the minimum share capital required to set up a company in Mexico is around 270 USD which must proceed in a local bank account of Mexico. While this is happening, the certificate of deposit must be submitted to the authorities at the time of business registration.
At 3E Accounting United Kingdom, we offer services which will help to set up a company in Mexico – by searching an office for you, preparing all the required documents, hiring employees, obtaining all necessary certificates and licenses for running a smooth business. Contact us for more.