Business opportunities in Mexico - Business setup, Costs, and Licenses

Business opportunities in Mexico seem bustling in the present world trade market. When looking for trade opportunities in Latin nations, Mexica appears at the top of the list. It is the second-largest economy in Latin America.

This country is also the leading trade partner of the United States. They make 80% of their export dealings with the USA. Experts also forecasted that this nation can be one at the top 5 ranks of largest economies by 2050. When these are the facts, business opportunities in Mexico sounds pretty optimistic.

Although opportunities are available, there are several aspects entrepreneurs must understand first. They must keep in mind the business setup process, costs and license requirements as well. For convenience, here we have discussed the typical business opportunities in Mexico.

Process of business setup in Mexico

To enjoy opportunities, you have to carry out a legal business setup process. But before that, you must select a corporate entity type in particular. Mexico follows 5 business entity types:

  1. Sole trader
  2. Limited Liability Corporation (S. De R.L.)
  3. Limited Liability Stock Corporation (S.A. de C.V)
  4. Partnership company
  5. 5.Branch office.

Upon selecting the business type, the next step is company registration in Mexico. Let's have a look at the steps of company incorporation in Mexico.

Steps of company registration in Mexico

Following are the steps of the company registration process in Mexico:

  1. Notarize all relevant and important documents by a notary you have to hire.
  2. Select and register a company name. The online registration process is available. But the form is in Spanish language, so the applicant needs the help of a notary or local individual.
  3. The notary will prepare an incorporation deed, which is in the local language (Spanish). This includes all the important information about the company. The information includes owner name, company name, address, shareholders, business type etc.
  4. Signing up of the incorporation deed by all shareholders in front of the notary. Each shareholder must place their genuine ID and address in the deed.
  5. The notary prepares the company registration documents in the presence of local authorities. A copy of incorporation deed is retained for reference purpose.
  6. Get registered with National Business Information Registry governed by the Department of Trade.
  7. For foreign investors, get enlisted by the Department of Trade Foreign Investment Register.

Cost of business registration in Mexico

The table below shows the cost structure for Limited Liability business incorporation in Mexico:

Business Incorporation step Cost in pesos
Capital requirements $3,000
Obtaining tax registration number (Registration fees) $14,899
Notary fees $10,500
Registration with the Mexican Social Security Institute None
Registration with the local tax administration department None
Registration with National Business Information Registry $100 – $670

The table here shows the cost structure for Limited Liability stock corporation setup in Mexico:

Business Incorporation step Cost in pesos
Capital requirements $50,000
Obtaining tax registration number (Registration fees) $14,899
Notary fees $10,500
Registration with the Mexican Social Security Institute None
Registration with the local tax administration department None
Registration with National Business Information Registry $100 – $670

Timeline for business incorporation in Mexico

A fixed time frame has to be considered when undertaking each business set up process in Mexico. The time frame has been separated against each registration tasks in the table below:

Timeline for Limited Liability Stock Corporation registration

Business registration process Time requirements for completion
Online name and company incorporation registration 1 day
Signing up deed of incorporation and obtaining tax registry number. 2 days
Registration with the IMSS 1 days
Registration with the local tax administration 1 day
Delegación or Notifying the local government 1 day
Registration with the SIEM 1 day

Timeline for Limited Liability business registration

Business registration process Time requirements for completion
Online name and company incorporation registration 1 day
Obtaining a tax registry number (RFC). 2 days
Registration with the IMSS 1 days
Registration with the local tax administration 1 day
Notifying the local government 1 day
Registration with the SIEM 1 day

License requirements for conducting business in Mexico

Business opportunities in Mexico demand several licenses and permits for conducting corporate functionalities. Without a proper license, a company faces legal issues. So, when registered a company, collecting licenses should be the next priority. Following are the licenses and approvals needed in a typical business set up in Mexico:

  • License for environmental impact that has to be approved by Secretaría de Medio Ambiente y Recursos Naturales.
  • Health license issued from Municipal authority and the Secretaría de Salud.
  • Importer license for the approval of goods imports.
  • Medical or paramedic license for medical related business
  • Chemical license for export or import of chemicals.

Business fields with investment opportunity in Mexico

Business fields with investment opportunity in Mexico

By now you must be aware of the fact that there are lots of business opportunities in Mexico for many investors. Let us find out top business sectors with opportunities in this nation.

  • Business involving computer parts and accessories selling
  • Computer servicing and assembly services
  • Digital marketing
  • Graphics and web design services
  • Computer training institutes
  • Hospitality and hotel management services
  • Tour and travel guide business
  • Hotel and resort industries
  • Ridesharing and car rental services
  • Event planner business
  • Financial management service
  • SEO management
  • Mobile app and software development industries
  • E-commerce business
  • Food and beverage manufacturing industries
  • Art and craft industries
  • Disposable items manufacturing
  • Boat building company
  • Airport shuttle service
  • Home appliance and toiletries manufacturing business

FAQ

What are some of the top companies in Mexico?

They are many companies who are doing great business in Mexico. Following are the top 10 companies running in this country:

  1. Walmart de México
  2. América Móvil
  3. Fomento Económico Mexicano
  4. Grupo México
  5. Grupo Elektra
  6. Grupo Financiero Banorte
  7. Coca-Cola Femsa
  8. Arca Continental
  9. Banco Santander México
  10. Grupo Bimbo

Is Mexico a good destination to setup a company?

Mexico has favorable climate to setup a company. Currently it is the biggest exporter to its neighboring nation USA. By 2050 it is estimated to reach the top 5 biggest economy in the world. It is one of the fastest growing economy. All these facts ensure idol condition to set up companies in this country.   

What are the best business fields to start in Mexico?

Following are the businesses fields an investor can try in Mexico:

  • Health care industries
  • Digital marketing and e-commerce
  • Home appliance and consumer products manufacturing
  • Computer and electronic accessories sell
  • Waste disposal and recycling industry
  • Agrobusiness
  • Ride sharing and car rental service
  • Computer and skill training service

What are the steps of business registration in Mexico?

Following are the brief business setup steps in Mexico:

  • Register a company name online
  • Notary prepares an incorporation deed for your company
  • Signing up of the incorporation deed by all shareholders in front of the notary.
  • The notary prepares the company registration documents in the presence of local authorities
  • Get registered with National Business Information Registry governed by the Department of Trade.
  • A foreign investor must register with the Department of Trade Foreign Investment Register.

What are the risks of registering a company in Mexico?

There are few risk factors that you must count in when setting up a business in Mexico. Below is the list of possible risk factors:

  • Slow business incorporation process in compare to the time required to setup a company in America
  • Getting permissions for premises or industrial construction often gets bothersome
  • Corruption often slows down investment process and can often turns off the investment interests.
  • Taxation system in Mexico is bothersome and time consuming

Related Articles:

Setting up a limited liability company in USA

Business structure in the USA - Related with types of business in Mexico

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