How to start your Mexican company

Mexican Entity Formation Steps

1. Choice of Entity

Please consult with your local tax advisor to determine whether a Mexican corporation (Sociedad Anónima) or a Limited Liability Company (Sociedad de Responsabilidad Limitada) is the more suitable option for your specific needs. For Mexican tax purposes, both types of entities are treated the same, so the choice typically depends on other legal or tax considerations in your home jurisdiction. Notably, many U.S. clients prefer the Mexican LLC due to certain tax advantages under U.S. tax law.

Note: The following steps outline the formation of a Mexican LLC. While certain details may differ, the procedure for forming a Mexican corporation is largely comparable.

2.     Entity Name Selection

The client will provide at least two options for the new entity’s name.

3.     Name Registration

Our firm will file an application with the Mexican government to register the selected company name.

4.     Members Details

• The client will provide the names of the members of the new entity (minimum of two members; no maximum).

• Either a foreign individual or a foreign entity may be a member.

• If a foreign entity is named as a member, formation costs will increase because the entity’s documentation must be reviewed, authenticated and translated into Spanish by a court-authorized translator in Mexico.

5. Power of Attorney

You do not need to travel to Mexico for the incorporation process. Our firm will prepare a Power of Attorney (POA) to be granted to members of our firm by the entities or individuals designated as shareholders or partners of the Mexican entity.

6. Drafting of Articles of Incorporation and Bylaws

• Our firm will draft the Articles of Incorporation and Bylaws for the new entity.

• An English version will be provided for your review.

  
  

7.     Notarization

Upon notarization of the Articles of Incorporation and Bylaws, the entity will be legally formed.

8. Registration with the Commercial Registry

The company will be registered with the Commercial Registry.

9. Registration with the Foreign Investment RegistryThe company will also be registered with the Foreign Investment Registry.

Estimated Timeframe

• Company Formation: 3 weeks from the date we receive the powers of attorney from the client.

• Taxpayer Number: 3 additional weeks to obtain the taxpayer number.

• Bank Account: 3 additional weeks to open a bank account.

Total estimated timeframe: approximately 9 weeks.

Important Notes

1. Taxpayer Number

• Obtaining a Mexican taxpayer number (RFC) is mandatory.

• To secure a taxpayer number, a physical address in Mexico is required (e.g. electricity bill).

• If you cannot provide a proof of address, our firm can arrange a temporary address for a monthly fee.

  
  

2. Tax Representative

• A tax representative is required to obtain the company’s taxpayer number and he/she will be jointly liable for any tax law violations or outstanding tax obligations of the company.

• If the tax representative is a foreigner, they must hold a temporary resident visa and a Mexican taxpayer number.

• The visa and taxpayer number process takes approximately 4 months and requires 2–3 trips to Mexico.

• If traveling to Mexico is not feasible, my firm can provide the tax representative service on a temporary basis (a temporary security deposit is required) for a monthly fee.

3. Bank Account

• A taxpayer number is required to open a bank account.

• If the company’s representative is a foreigner, most banks will require a Mexican temporary resident visa to open the account.

• If you do not have a visa, our firm can assist with the account opening process.

4. Tax Compliance

• After formation, the company must file monthly and annual tax returns, even if it has no sales or operations.

• Our in-house accountant can handle these tax filings at a competitive rate if the requirements are straightforward.

5. Anti-Money Laundering Requirements

• Each shareholder must provide:

  • A taxpayer number (e.g., Social Security Number for U.S. citizens)

  • Proof of address (e.g., utility bill, phone bill, or bank statement)

• If any shareholder is married, the spouse’s passport, phone number, email, and marriage certificate are also required.

Copyright Mata Law, S.C., 2025