How to incorporate your foreign company to enjoy Mexico’s IMMEX program
Do you intend to build your business empire in Mexico? There is very tight competition for investments in this country. The competitiveness results from:
- International business treaties
- The strength and the size of the internal market.
- The macroeconomic stability.
TACNA is among the many entities that help people operate their businesses in Mexico. Despite all these, it’s still a challenge to build your business as a foreigner in this country.
It will take you a long time to incorporate a business in this country. You must have a clear view of local policies and regulations. Here, you will get critical factors to consider before you build your business here.
Business entity type
Decide whether your business will be a branch, representative office, or entity. Understanding the business nature to conduct will speed up the decision-making process. Check if you will assign a Mexican expert to assist or send a person on the ground.
Choose a name
To request names from the Mexican ministry of economy, you need to have five options of names with you. The Mexican department concerned will have 3 to 7 days to reject or approve the name. The registration with Mexican government bodies is all independent working as separate entities.
Governance
If the business has foreign shareholders, you need to submit many documents. They support this incorporation. The documents need to get apostilled and notarized for them to be effective in the country.
You will need a public notary to be your witness and sign the documents. They have to be qualified and experienced lawyers appointed by a governor of the state. They will authenticate and sign the documents. They will also deal with all legal advice needed.
Get a Mexican resident to assist in the process on behalf of the foreign shareholders. A specific PoA (Power of Attorney) gets prepared and sent to shareholders to sign. The PoA also needs notarization and signing for it to be effective. The entity needs bylaws. The incorporation works relate to the bylaws of the business. It’s a must to have bylaws legalized and signed by the public notary to make the legal process to be complete. Timelines for the process depend on when the original documents get signed. It also depends on when it’s apostilled, notarized, and gets in the hands of the public notary in Mexico. The public notary must receive all hard copies of all documentation. They should have wet ink signatures.
The Mexican authorities don’t allow digital signatures. All this process here must be in person and not virtual.
The tax ID number
It’s a must for incorporated companies to have a tax ID number. You can only get this number if you are a Mexican citizen or resident. Without the number, you can’t open a bank account or give any invoice. You must use Mexican banks to make tax payments. Non-Mexican banks can’t make the payments.
The process will take between 6 weeks and 3 months to complete.
Conclusion
The business market in Mexico is lucrative for local and foreign business entities. Companies enjoy cheap labor with a broad market, especially in areas near the USA. Despite all this, it’s not easy to set up a foreign company because of the strict measures.
