MEXICAN LLC, IS IT CONVENIENT?

When starting a business in Mexico as a foreigner, it's crucial to consider legal and tax aspects based on the business type, structure, and financing.

Setting up a Mexican company is often the best approach as it has legal recognition and a tax ID for fulfilling tax duties. There are different company structures available in Mexico to suit various business models, whether family-owned or involving multiple investors.

Can a foreign company partner with a Mexican one? What documents are needed?

Yes, a foreign company can partner with a Mexican one, but specific documentation is required to validate its legality according to national and international rules.

This includes company bylaws, operational agreements outlining directors and shareholders, and proof of its tax ID in its home country. Individual shareholders/partners need valid passports, tax IDs, and possibly marriage certificates along with spouse information.

Foreign shareholders/partners can be residents or non-residents, but the legal representative must be a Mexican tax resident with a Tax ID.

Clients may question the need for certain documents or personal info, but it's all part of international agreements to prevent illicit financing. A forthcoming blog will elaborate on this topic.

What's needed to start operations?

To start operations, the entity must register with the Federal Tax Administration and the Public Registry of Commerce, plus obtain any required permits and licenses from municipal, state, or federal authorities, depending on the business nature.

For further guidance on setting up a corporation in Mexico, our expert corporate lawyers are available to assist in initiating the process efficiently.