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Starting a business in Mexico can be an exciting and rewarding opportunity. However, it's important to understand the steps involved in setting up a Mexican corporation. At Baja Memories Real Estate, we're committed to helping entrepreneurs navigate this process smoothly. In this blog post, we'll go over the steps you need to take to set up a successful Mexican corporation. From registering your business name to obtaining necessary licenses and permits, we've got you covered. Read on to learn more about how to get your Mexican corporation up and running
  1. Get approval to use the company / firm name and file the draft deed/articles of
    incorporation with the notary.
    The applicant can get approval for the intended company name by providing to the
    notary a list of potential names you will like for your corporation.
  2. Once reservation of the name is complete, the investor can choose the public notary of
    their preference, that will issue the incorporation deed. The notary contacts the investor
    via email to give the appointment date to sign the incorporation deed.
  3. Sign the deed of incorporation before a public notary, get Tax Registry Number (RFC) and
    file the deed of incorporation online with the Public Register of Commerce. The
    Notary charges can range from USD 1,500 to USD 3,000, if the public notary drafts or gives
    expert advice on the company bylaws. Before appearing in front of a notary, the company
    charter and bylaws needs to be drafted.
  4. The notary could help you to do the tax registration number at the Secretaría de Hacienda
    y Crédito Público) (through the Sistema de Administración Tributaria, SAT).
  5. The corporation must be registered in the National Registry of Foreign Investments (RNIE)
    within 40 days of the date of incorporation of the company.
    Normally, it can take the notary between three to five weeks, to cover all the process of setting a
    Mexican corporation.

What types of business entities can be formed in Mexico?
The most common types of business entities that can be formed in Mexico are Sociedad Anonima
(S.A.) similar to a public Limited Liability Corporation (LLC). An S.A. can either have fixed or variable
capital. If the latter, the company becomes a Sociedad Anónima de Capital Variable, or S.A. de C.V.
(public limited company or corporation). The other type is LLC.
To form a Mexican Corporation/LLC, you’ll need at least two shareholders but, as already stated, it
is not necessary for either to be a Mexican national.
It will cost you between $1,500—$3,000US to set up a Mexican Corporation/LLC, and while you
won’t have to pay an annual fee as you would to maintain a bank trust, you will incur costs to file
your corporate taxes monthly and pay a Mexican accountant to do it for you.
Another advantage of the S.A de C.V. /LLC is that a single Corporation/LLC can own as many pieces
of real estate as it wants, individuals must establish a separate bank trust for each piece of property
they purchase.

How much could a Mexican accountant cost monthly?
The cost could be between 50-200 USD monthly for to do the taxes calculation for you. You can
write off all the payments and expense of maintenance the properties in Mexico, including HOA
fees, accountant fees, power, water, phone bills, property taxes, property management fees, etc..

What type of documents are necessary to set a Mexican corporation?
First, you will be required to complete the form in which you will provide your company’s
information (the Foreign Legal entity Shareholder): names, shareholders, type of business, etc. In
that form you will be asked to attach certain documents. We ask that your documents are legible if
any of these are photos orscans.
If you want to create a corporation in Mexico it must have two or more persons or foreign
companies as shareholders and the notary public will require the notarized and apostilled or
legalized (depending on the country, it was created) documents of your foreign company. You can
define the percentages of each shareholder, but the second shareholder must possess at least 1 per
Apostille or legalization are processes of authentication for any legal document so that it will be
recognized as legal and valid in the country where you need it. The apostille or legalization process
will be subject to the country where you are located or where your foreign company has been

Check list of documents:

  • Complete the form KYC (General personal information as: Full name, Nationality, Marital
    status, Place of birth, Date of birth, Current address, Occupation)
  • Two valid ID with photo
  • Birth certificated
  • Marriage certificate if applicable
  • Proof of address in USA (power, telephone, or water bill)
  • Set a local address for your registration at the Hacienda Publica (Mexican IRS)
  • Proof of address of the local address registered. (Water, power bill)
    You will be asked to provide the following information for each shareholder and

    • Percentage of participation in the share capital of the company:
    • Will this person be a director?
    • Provide a scanned copy of their passport.
    • Once you are in Mexico, you will provide a copy of the Tourist Visa issued on arrival.

These processes apply to the following cases:
Due to Mexican regulations, all the shareholders of the Mexican legal entity that will be created
must be present to sign the documents before the public notary; if you or any shareholder were not
able to personally come to sign, you can grant a power of attorney to us to represent you at the
signature of your Mexican legal entity documents before the notary public. For this, we will need
the power of attorney to be notarized and apostilled or legalized according to the country in which
it will be granted.

If the place in which the document will be executed is part of The Hague Convention you will have
to go through the apostille process. This is a way to legalize your documents so they can be used in
Mexico. The apostille process is carried out at the secretary ofstate of your city. For example, if you
are located anywhere in the United States of America, you will have to go to the corresponding
secretary of state and file the paperwork there.

In case the country in which the document will be executed is not part of The Hague Convention,
you will have to go through the legalization process. This process must be done at the Mexican
Consulate or secretary of state in your city. For example, if you are in Toronto you will have to go to
the Mexican consulate in that city to legalize your document and be able to use it in Mexico.

Please note that all the documents that were in English must be translated to Spanish by a certified translator

Once your documents are properly executed, your Mexican lawyers will then be able to proceed to
sign the documents of your Mexican legal entity; once the documents have been signed, they will
proceed to have your corporation registered at the Public Registry of Commerce and the National
Registry of Foreign Investment and obtain your RFC (Mexican Tax ID).
Our local closing team will continue to support you after your corporation has been set up till you
do the closing of your properties under the Mexican corporation.
These steps are taken to ensure that your company will be legally incorporated and ready to use in

Good To Know:
• Mexico has a strong tax treaty with the US and Canada, which provides relief from double
taxation on all income.
• If you are not a permanent resident in Mexico and you want to do business in Mexico you
are required to make a yearly declaration to the Mexican Institute for Foreign Investment.
• By forming a Mexican corporation, you are able to purchase property in a restricted
zonewithout a fideicomiso


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