Is It Easy to Start a Business in Mexico? Starting a Business in Mexico

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Initial Steps and Legal Structures

Starting a business in Mexico can be faster and simpler than in other Latin American countries. In some cases, you can begin operating your own company in just one day without any upfront costs. However, there are still important steps to take in order to comply with Mexican regulations.

  1. Submit A Request To The Ministry Of Foreign Affairs (SRE). The first step in creating a company is to submit a request to the Ministry of Foreign Affairs where five possible business structures are listed in order of preference for the company. This is done to ensure that there is no company already established in the country with the same corporate name.

  2. Draft The Constitutive Act. It’s crucial to consult a lawyer to determine your options and ensure compliance with Mexican regulations before selecting your business niche.

Types of Companies in Mexico

There are two major types of companies that are used for business in Mexico, each should have a minimum of two stakeholders to open:

  • Sociedad Anónima, S.A.: This is a stock corporation, frequently used by Mexican and foreign investors with large-scale operations.

  • Sociedad de Responsabilidad Limitada, S. De R.L.: This refers to a limited liability company, often used by small businesses.

Obtaining a Mexican Residency: To start a business in Mexico, it is important to obtain a Mexican residency.

Advantages of Doing Business in Mexico

Choosing to start your business in Mexico comes with a lot of advantages, including lower-cost labor with a proven record for quality of production, as well as close proximity to the United States, making shipping costs cheaper.

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