Register a Business in Mexico: a 6-Step Guide

Many choose to register a business in Mexico or form a branch in Mexico, due to its proximity to the US, talented labor pool and rapidly growing economy.

Mexico is the second-largest economy in Latin America, behind only Brazil. As of 2024, the population of Mexico is estimated to be approximately 129.4 million.

In terms of economic indicators, as of 2024:

The Gross Domestic Product (GDP) of Mexico is projected to be between $1.4 trillion and $1.5 trillion. The Gross National Income (GNI) per capita is expected to increase by 2.9 thousand USD, which would be an increase of 18.82% from the previous year. The Foreign Direct Investment (FDI) figures for 2024 are not readily available. However, in 2022, Mexico’s FDI was $38.59 billion, showing a 15.3% increase from 2021.

This makes it an upper-middle-income nation, according to World Bank standards. The ranking of Mexico in terms of global FDI recipients for 2024 is not readily available. As of 2022, Mexico’s FDI made it one of the top recipients globally.

If you register your company in Mexico, you access a regional trade hub and the 17th-largest exporter in the world. Several major ports serve the Atlantic and Pacific oceans and it links Latin America and the United States and Canada.

Mexico’s businesses have preferential access to the United States and Canada through the United States – Mexico – Canada Agreement (USMCA), and the country is also part of the Pacific Alliance with Chile, Colombia, and Peru.

Key exports are petroleum oil (Mexico produces roughly two million barrels per day) cars, medical devices, and fresh produce. While the United States receives approximately 76% of Mexican goods, other key destinations include Canada, China, Germany, and Japan. 

Many investors register a business in Mexico to tap into its economic opportunities, but there are some critical details worth knowing. Here’s a step-by-step guide on how to complete the registration process,

Or go ahead and contact us now to discuss your business registration options in Mexico and for further advice on how to navigate the legal requirements to start a business in Mexico.

Important considerations for company registration in Mexico

If you plan to register a business in Mexico, you will have a number of things to consider. Those include:

• Find a legal representative: By law, you’ll need a legal representative in Mexico if you plan to open a business without living there permanently. That legal representative can be any legal adult who is not otherwise prevented from occupying such a role. However, it makes sense to choose someone who knows the local business community. In many cases, it’s also preferable if they have either corporate law or accounting knowledge to support your business.
  
  Your legal representative must either hold Mexican citizenship or have permanent resident status and needs a local tax ID. This individual will represent you in front of authorities, and hold certain powers to represent you in legal matters. This person will be your local partner and should be someone whose advice you trust.
  
• Legal Entity type: One of the first things your experienced legal representative can help you with is choosing your entity type. There are various types of companies in Mexico to choose from, based on your business nature, number of initial investors, and management plans.
  
• Economic activity: Accurate registration of your economic activity is crucial when you register a business in Mexico to avoid legal complications. Your legal representative can advise you on how to properly define your activities to ensure remain compliant with local regulations.
  
• Business opportunities in Mexico: Many enter the Mexican market without a specific business goal, but rather to try their hand at many expanding business opportunities in Mexico. Due diligence and professional market research on sectors that may suit your business and skill set are crucial. Once again, an experienced corporate legal representative can provide useful advice or put you in touch with the right contacts.

How to register a business in Mexico in 6 key steps?

Starting a business in Mexico involves navigating legal processes and meeting specific requirements. Whether you are an aspiring entrepreneur or an investor, understanding these steps is essential to successfully incorporating a business in this country. Below, we outline the crucial steps to establish your business presence in Mexico:

• Step 1 – Grant your legal representative power of attorney (POA).
• Step 2 – Draft your entity’s company bylaws when forming your company in Mexico.
• Step 3 – Register your business with local authorities.
• Step 4 – Apply for your corporate tax ID number.
• Step 5 – Open a corporate bank account for your new company.
• Step 6 – Deposit your initial investment.

1. Grant your legal representative power of attorney (POA)

Your chosen legal representative should be able to draw up a POA for you to sign, which will grant them the power to act and sign official documents on your behalf.

2. Draft your entity’s company bylaws when forming your company in Mexico

The company bylaws outline the purpose of your business, as well as how it will be structured. Local authorities will only accept them if a public notary formally legalises all documents.

3. Register your business with local authorities

After legalizing the company’s bylaws, the legal representative can register the business with the Public Registry of Property and Commerce in Mexico. The legal representative must specify any real estate held by the company, along with its commercial purposes, objectives, and goals during the registration process.

4. Apply for your corporate tax ID number

Mexico’s Tax Administration System (SAT) will grant your entity a corporate tax ID number that is crucial for identifying it on invoices and other official financial documents.

5. Open a corporate bank account for your new company

When you receive your tax ID, you will be able to open a corporate bank account. Your legal representative can guide you in choosing a provider based on the type of business you register and where you are located. Different banks have different benefits, and local guidance when making this decision is very helpful.

6. Deposit your initial investment

The final step to registering a business in Mexico is to deposit your initial investment in your corporate account. Once that has cleared, and as long as it meets any requirements stipulated by the type of entity you have chosen, you are ready to do business.

Biz Latin Hub can help you register / form a business in Mexico

At Biz Latin Hub, our experienced multilingual team of company formation specialists can help you register a business in Mexico to explore business opportunities in the country. We offer a complete range of back-office services, including legal, accounting, recruitment, due diligence, and commercial representation, making us your sole point of contact for setting up a business in Mexico, or any of the other 15 countries in Latin America and the Caribbean where we operate.

Reach out to us now to discuss how we can help your business flourish.

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