North America

Company Registration

You have decided to expand your business to Mexico or to incorporate a new company? In this guide, you will find ten steps to a successful company formation in Mexico. Reelo will support you in every step to conclude the company formation as soon as possible and according to your individual needs.

Step no. 1: Find the right type of business structure

Identifying the appropriate type of business organization for your company is the basis for a company incorporation in Mexico and necessary for the further registration process. The most popular legal business entities in Mexico are:

Legal Forms:
Stock CorporationSociedad Anónima
Sociedad Anónima de Capital VariableS.A.

✅ Step no. 2: Registration of the company’s name

The name of your company has to be approved by the Mexican authorities before the Mexican company can be formed in front of the notary. The Ministry of Economy (Secretaría de Economia) is responsible for name approval. It is helpful to also register the trademark at the Mexican authority IMPI (Instituto Mexicano de la Propiedad Industrial) to avoid that another company will use the same trademark. 

✅ Step no. 3: Define your company’s capital

Before starting operations in Mexico both the amount and structure of your company should be determined through capital-stock or shares. The minimum capital of each shareholder/partner has to be 1 Peso.

✅ Step no. 4: Articles of Incorporation drawing up and approval

The incorporation document will include By-laws of the company’s name, the corporate purpose, social address as well as the shareholders’ name and the capital structure, amongst other documents. All required documents need a notary certification and an apostille. Once obtained, the documents have to be translated by an official Mexican translator. Reelo supports you not only in the process of obtaining the required documents but also with the official translations.

✅ Step no. 5: Fiscal Address of the Mexican company

All Mexican companies need a fiscal address to obtain their tax-ID. According to the corporate purpose of the business, an appropriate location is determining for the company’s success in Mexico.

✅ Step no. 6: Tax Declarations

The entity will be responsible for the monthly tax declaration at the tax authority SAT (Servicio de administracion tributaria). Please bear in mind a power of attorney is required for tax declarations.

✅ Step no. 7: Registration of employees

For employees’ hiring processes, it is necessary to register the company at the social security and the National Worker´s Housing Fund. Reelo provides you with the current legislation requirements in order to successfully hire employees in Mexico. For the registration, specific powers of attorney are required.

✅ Step no. 8: Registration at immigration

Please keep in mind that there is a specific permit to hire foreigners which is called Constancia de empleador. This authorization has to be renewed yearly after the annual financial statements or if the company changes its legal representative or company´s fiscal address.

✅ Step no. 9: Registration of foreign investment

Registration of foreign investment capital applies in case one of the business owners’ nationality may be other than Mexican. Registration at the Ministry of Foreign Investment has to be done within 40 days after the business incorporation date.

✅ Step no. 10: Starting your business

Congratulations! You can start with your business operation! 🚀