Foreigners can legally own 100% of a Mexican corporation and benefit from low overhead and labour costs. Mexican companies' tax laws do not discriminate between foreign or Mexican national-owned companies. We suggest you save yourself the aggravation of dealing with government red tape and hire an experienced Mexican law firm to create your corporation. A lawyer will get you started by creating a corporation and ensuring you are set up to fulfil the legal obligations of being a business owner in Mexico.
Some of the steps your lawyer will take to create your business include;

• Registration from National Registry of foreign investment of Secretary of Economy
• Create the Constitutive Act, a document stating necessary information about the company: business name, type of company, and administration. The Constitutive Certificate will be notarized before a Notario Público.

Determine which entity will best suit your new business. The most common entities are:

• -Public Limited Company or Corporation (Sociedad Anonima (S.A.) or
• -Limited Liability Company (Sociedad de Responsabilidad Limitadada (S.de R.L.)

* Did you know that you can purchase property outright through a corporation in Mexico and avoid the use of a fideicomiso.

Once the Constitutive Act is created and legalized, the corporation must be registered with SAT - Tax Administration Service and receive an RFC - Federal Tax Identification Number.

Present the Constitutive Act, RFC, and Power of Attorney allowing the legal representative to carry out actions for the corporation to the Public Registry of Property and Commerce in the same city where the company will be registered.

Register at IMSS - The Mexican Institute of Social Security as well as other government agencies. It is imperative to understand and comply with employee rights and benefits.

Although foreigners may open a business in Mexico without being a resident, if the owner wishes to work at their company, they must register the business with Constancia de Empleador to hire foreigners. Only then can the company hire foreigners, including the owner.

For personalized advice, contact us at info@kananlawyers.com, and we will get you set up for success in Mexico.