Are you thinking of founding a company in Mexico but you are still not convinced that this is the best destination? According to the Doing Business 2020 publication of the World Bank, Chile and Mexico are the two Latin American countries with the most facilities to create a company. In addition, Mexico is ranked 60th in the ranking, a very important fact if we consider there are 190 participating countries.
In previous articles on the Extranjería México blog, we have already analyzed the reasons for living in Mexico and investing in this country. Now we invite you to know the 4 reasons to found a company in Mexico.
1. Security to undertake and take care of your assets
For entrepreneurs, founding a company in Mexico is also synonymous with financial security. Why? Because in this way they can protect their assets as a natural person in case legal or financial problems arise in the business.
Creating a company favors transparency and fiscal, administrative and legal order, allowing to correctly differentiate and protect personal and business assets.
However, the first thing you should know is that a foreigner or tourist can only open a company in Mexico with a Mexican partner or Mexican resident, who will be the legal representative.
2. The benefits of Limited Liability Companies (Sociedades de Responsabilidad Limitada)
Usually, many Mexican and foreign entrepreneurs avoid creating a company due to the costs associated with founding a company. However, Limited Liability Companies are highly recommended for SMEs, since the liability of these companies is limited only to the contributed capital. Therefore, the personal assets of the partners will not be affected in case that debts are incurred.
This is one of the most used companies in Mexico and the world, since it lays solid foundations for possible expansions, growth and capital increase.
- Currently, the minimum capital to establish a Limited Liability Company is 0-40 thousand mexican pesos. Regarding the reserve, it must be equivalent to 5% of the annual profits until completing 20% of the fixed social capital.
- The minimum number of partners is two, while the maximum is unlimited. The partners have as their only obligation the payment of their respective shares.
- The duration of a Limited Liability Company can be from 1 to 99 years.
3. For two partners or more, a Corporation (Sociedad Anónima de Capital Variable)
However, the most popular and attractive type of commercial company for investments in Mexico is the Corporation (Sociedad Anónima de Capital Variable). In these companies, the owners become partners by participating in the capital stock through shares.
The two requirements to create a company of this type are:
- In every company there must be at least two partners, whether individuals or legal entities.
- Ability to verify the necessary budget for the company to start its activity, as indicated in article 89 of the General Law of Commercial Companies.
Are you a foreigner and want to establish, together with a Mexican partner, a company in Mexico? Contact us so we can help you!
4. Count with the advice of Extranjería México
Founding a company in Mexico -as in any other country- raises various concerns and questions in entrepreneurs. Therefore, it is essential to have the advice of Extranjería México to understand what type of company is best suited to the business in question. Once that first question is resolved, it is possible to start the procedures to found the company quickly and safely in our offices located in Playa del Carmen, Tulum, Cancun and CDMX.
If you want to found a company in Mexico, do not hesitate to contact us. We are here to help you!