Creation of a Mexican company: When is it appropriate 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. Incorporating a Mexican company may be the most appropriate way to carry out these activities because it has its own legal personality and a Federal Taxpayer Registry (tax identification number in Mexico) to comply with tax obligations. Given the various types of companies in Mexico, you can choose the structure that best suits the business, whether family-owned or multiple investors.
Yes, it is possible for a foreign company to be a partner of 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, operating agreements that designate directors and shareholders or partners, and a document proving your tax identification number in your home country.
For natural persons who are shareholders or partners, a valid passport, tax identification number and, where applicable, marriage certificate and general information about your spouse are required. The shareholders or partners of the Mexican company may be foreigners with or without residency. The legal representative must be considered a tax resident in Mexico, have a Taxpayer Identification Number (RFC), and must provide this information.
Sometimes clients question the need for certain documents or personal information. However, all the information requested for the creation and/or association of a Mexican company is part of international agreements aimed at preventing the financing of illicit activities. In our next blog we will delve into this topic to fully understand the reasons and justifications behind this request for information.
For an entity to begin its activities, it must have the necessary registrations with the Tax Administration Service and the Public Registry of Commerce, as well as the permits and licenses that may be required by the municipal authorities, state or federal government, depending on the nature of the entity. business.
For more information to begin the process of creating a corporation in Mexico, our expert corporate attorneys will be happy to help you answer any questions and efficiently begin the incorporation process.
