How to set up a business entity in Mexico | finder.com
Business entity in Mexico

How to set up a business entity in Mexico

We value our editorial independence, basing our comparison results, content and reviews on objective analysis without bias. But we may receive compensation when you click links on our site. Learn more about how we make money from our partners.

To incorporate in Mexico, start by choosing the right business structure and hiring knowledgeable liaisons.

Mexico has opened its doors to foreign nationals, providing incentives both across the country and in specific jurisdictions. Showing high consumer confidence within an economy that’s weathered the storm of lower oil prices, you have many reasons to do business with our southern neighbor.

As it stands, creating a business in Mexico can tricky. But with the right knowledge and expert help, you can incorporate to legally operate in one of largest and most open economies in the world.

|

What kind of entity makes sense?

There are four common entities for foreign investors who want to do business in Mexico: limited liability company, joint venture, partnership enterprise and representative office.

Limited liability company

This is a company entirely controlled by you. You might not be able to set up a LLC in certain industries, and you may need government approval in other industries.

It’s not quick or easy to set up a WFOE. However, the WFOE is often considered an effective entity for foreign investors because it affords complete control over business activities.

Joint venture

In a joint venture, you partner with a Mexican citizen to start a business entity or contractual arrangement. This is a limited liability entity.

Experts warn that a joint venture is unwieldy because partners rarely hold the same business vision. Even still, many individuals choose to enter into joint ventures because they can’t start a WFOE.

Partnership enterprise (PE)

Unlike an LLC or a JV, you don’t create a legal entity by entering into a partnership. Instead, you simply create a contract between one or more partners to conduct business.

There are other major differences. For example, a PE is an unlimited liability company, so you could be on the hook for full costs incurred through your business. PEs may be excluded from certain Mexican industries.

Representative office

Creating a representative office is the easiest way to build a business entity in Mexico. It’s also an inexpensive option. However, a representative office excludes you from performing many operations in the country. For example, you can’t sign contracts or even earn money. Essentially, a representative office gives you a presence in Mexico, and not much more.

Should I hire a professional?

It’s an excellent idea to hire a liaison to navigate tricky incorporation waters. Work with someone from Mexico who speaks fluent Spanish. They’ll interact with officials on your behalf, and they’ll tell you the appropriate places to register your business entity.

The US–Mexico Business Council and US Commercial Service are great places to search for a qualified contact.

What kind of documentation will I need?

Here are a few documents you’ll need to register your business:

  • Certificates of incorporation
  • Bank reference letters
  • Passport copies
  • Resume and photo
  • Description of the scope of your business
  • Lease contracts of Mexican office address
  • Business license

You may need different documentation depending on where you’re registering and which officials you meet with. Strongly consider working with a company that helps foreign investors create businesses in Mexico.
Laws & Legal Docs for International Money Transfers to Mexico

Where do I file my information?

You’ll submit documentation to incorporate your business with the Secretariat of Foreign Relations. Your business may also need to be approved by other authorities.
Doing business in Mexico: economic snapshot

|

Other factors to consider

  • Naming your business. You’ll need to get approval from the Secretariat of Foreign Affairs to use your company’s name.

International billing and payments

Your new business will require you to make and receive international payments, which means you’ll make transactions between currencies and across borders.

You can safely and affordably manage your business payments — with lower fees and stronger exchange rates — by comparing the services of a money transfer specialist.

Use a money transfer to manage your international business payments

Companies like Payoneer and XE can help you set up regular transfers to your vendors overseas.

I want to send

to

Min. Transfer Amount Transfer Speed Online Transfer Fee Rate Amount Received Description CTA Details
$0 3 - 5 days - - Save your business time and money with XE. Go to site Show details
$1 3 - 5 days USD 1.00 20.236 MXN 101,162 Enjoy high maximum transfers into more than 20 currencies while saving up to 90% over local banks. Go to site Show details
$2,000 3 - 5 days USD 0.00 20.168 MXN 100,838 No-limit transfers with competitive exchange rates for 100+ currencies. Go to site Show details
Same day USD 0.00 20.077 MXN 100,383 Increase business efficiency with zero transaction fees and same-day transfers. Go to site Show details

Compare up to 4 providers

I want to send

to

Min. Transfer Amount Transfer Speed Online Transfer Fee Rate Amount Received Description CTA Details
USD 0 3 - 5 days USD 0.00 20.066 MXN 100,332 Transfer up to $500,000 with no minimums and no fees. Go to site Show details
USD 1,000 1 day USD 0.00 20.056 MXN 100,281 No maximum limit, no fees and competitive exchange rates for 100+ currencies. Go to site Show details
USD 1 1 - 2 days USD 7.00 20.077 MXN
100,242
Enjoy high maximum transfers into more than 20 currencies while saving up to 90% over local banks. Go to site Show details
USD 1 Within an hour USD 3.99 20.036 MXN 100,100 Use promo code FINDER to send your first transfer with no fee.
Send to 110+ countries for bank-to-bank deposit, cash pickup or mobile top-up.
Go to site Show details
1 - 2 days USD 0.00 20.016 MXN 100,079 Get live quotes on exchange rates and take advantage of no transaction fees with no limits on transfers. Go to site Show details

Compare up to 4 providers

Using a credit card in Mexico

Bottom line

It’s important to choose the right business entity to operate in Mexico. Consider working with an organization that specializes in helping foreign businesses incorporate in the country — this will streamline your progress and help you avoid pitfalls along the way.

|

Frequently asked questions

Was this content helpful to you? No  Yes

US International Money Transfers Offers

Important Information*
XE Money Transfer

Transfer up to $500,000 with no minimums and no fees.

WorldRemit International Money Transfers

Use promo code FINDER to send your first transfer with no fee.
Send to 110+ countries for bank-to-bank deposit, cash pickup or mobile top-up.

World First

No maximum limit, no fees and competitive exchange rates for 100+ currencies.

TransferWise

Enjoy high maximum transfers into more than 20 currencies while saving up to 90% over local banks.

Ask an Expert

You are about to post a question on finder.com:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and Terms of Use.

Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.

US International Money Transfers Offers

Important Information*
XE Money Transfer

Transfer up to $500,000 with no minimums and no fees.

WorldRemit International Money Transfers

Use promo code FINDER to send your first transfer with no fee.
Send to 110+ countries for bank-to-bank deposit, cash pickup or mobile top-up.

World First

No maximum limit, no fees and competitive exchange rates for 100+ currencies.

TransferWise

Enjoy high maximum transfers into more than 20 currencies while saving up to 90% over local banks.

Go to site