How to Open a Subsidiary in Mexico

With success achieved in the current marketplace, there is a business opportunity through the opening of a subsidiary in another country. With an effective business model already established, a company formation and incorporation is a viable option.

You have two logical options available in regards to operating in a new location:

• Form an independent company
• Open subsidiary company

Mexico is fast becoming a popular location for company formations, company incorporations and international trade. With a large, skilled and young labour market, limited barriers to entry and a stable economy, it is no surprise that this economic powerhouse is predicted to be one of the top economics by 2050.

Opening a subsidiary in Mexico

The first step to open a subsidiary in Mexico is to obtain the authorisation from the Mexican government and to pay a government fee of approximately US$100. To obtain this permission you will have to submit a declaration form to the Ministry of Economy. This declaration will include the incorporation documents of your holding company duly apostilled or legalised by the Mexican Embassy or Consulate. This declaration must be translated by an officially certified translator (if the original documents are not already in in Spanish).

In addition, you must provide a letter addressed to the government which includes the following:

1. A written declaration stating that the holding company is incorporated according to the laws of the country of origin, and its bi-laws are not against public order.
2. An explanation of the activities your subsidiary will undertake in Mexico.
3. The physical address for the commercial activities of the subsidiary.

Once the Mexican government approves your request and grants you the authorisation to establish your subsidiary, you will have to visit the Public Register of Trade in order to obtain the registration of the subsidiary. To obtain this registration you will have to show the authorisation papers granted by the Mexican Ministry of Economy and the incorporation documents of the holding company.

If you are interested in opening a subsidiary in México, Biz Latin Hub can help

It is important to consider all of your options when expanding into the Mexican market, and a reliable company formation agent will be able to offer you invaluable advice. At Biz Latin Hub, our full suite of legal, accounting, and company formation services are delivered by multilingual teams based throughout Latin America and beyond.

Reach out to us now to find out how we can be your single point of contact to incorporate and manage your business in Mexico, or elsewhere in the region.

Learn more about our team and expert authors.