How to create a company in Mexico: guide and steps to follow

if you wonder how to create a company in mexico, surely you have the soul of an entrepreneur and you are willing to take that leap to be an entrepreneur. In this article I will talk about what you should take into account for the creation and constitution of your company, I will also give you some advice that an expert in the field left us so that you do not have problems when starting. Are you interested? Let’s go to the content!

Creation and constitution of a company, is it the same?

The answer is yes, if what you want is to create a company that can operate legally and you want to expand your business, then the creation of a company in Mexico It’s not just about marketing a product and creating a name. Establish a company it is actually the birth of it before the law.

Before the State, a company does not exist if it is not constituted and would not have certain rights or obligations. For this reason, it is recommended that, in order to start operating your business legally, you establish your company with all the legal formalities.

Incorporate your company It will allow you to grow and consolidate your brand, you will also have additional benefits, compared to selling products informally. Some of the advantages are:

• Access acceleration and scaling programs
• You can participate in funding contests with investors
• You will have legal powers to export
• You can compete in a larger market
• You will have the possibility of being a supplier of large companies
• Possibility of opening business accounts
• Separate your assets from the assets of your company
• You will have the possibility of providing social security to your employees
• You can invoice

Formally creating your company will allow you to take your entrepreneurial idea to the next level and will open many doors for you in the business world. Now I explain what you should take into account when you decide to take that leap.

How to create a company in our country?: steps to follow

The lawyer specializing in Civil Law, recommends following these steps if you want to know how to set up a company here in Mexico:

1. Define what type of commercial company you are going to create. (Later we will talk about those that exist). Companies are distinguished, among other things, by the way they respond to third parties; Some may be for the company’s assets and reach the partner’s assets, or they may be for limited amounts.
2. Process a protocolized act before . That is, process the articles of incorporation of your company detailing the obligations and rights of the partners, as well as the legal representative of the company.
3. Define your bylaws very well. This is nothing more than the official guide of how your company is going to operate and it comes within your articles of incorporation. In the corporate purpose of your company, it will be detailed in detail what it will be dedicated to, what type of products or services it will sell and what its scope will be. They should be as clear as possible and have the real activities of what your company does.
   ✨Tip: The bylaws can always be modified if your line of business changes, but you must do it again before the notary and detail the changes in order not to incur in faults.
4. Registration with the SAT for your company. This way you can issue invoices in the name of your company, and at the time, make your .
5. Registration before the .
6. High employer before the . With this you can offer your workers the social security benefit.
7. Open a business bank account. You can do this at the bank of your choice and doing so allows you to have access to business credits, tax payments, payroll and other advantages according to the financial institution you choose.

📄 Note: For the completion of the procedures you can take from 3 to 6 months, approximately.

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How much does it cost to create a company in Mexico

Another question besideshow to create a company in mexico?, is also How much does it cost to create it? The cost will basically depend on the fees of the notary and/or lawyer that you decide to hire, in addition to the fact that you will have to pay some rights within the procedures that you have to carry out. Now I explain it to you.

• Notary fees and protocolization: from $15,000MXN to $20,000 MXN on average
• Lawyer fees drafting the statutes: $10,000MXN to 15,000MXN on average
• Payment of registration fees to the Public Registry of Commerce: $2,000 MXN (varies)
• If your business will be physical, you will need to pay the land use right. According to the Federal Government page, these are the costs:

For surface intended for commercial use, offices, independent and professional personal services:

• From 0 to 50 m2 $1,458.94MXN
• From 51 to 100 m2 $4,214.60 MXN
• From 101 to 500 m2 $7,348.79 MXN
• For area exceeding 500 m2 $9,552.89 MXN

For surface intended for industrial use:

• Up to 500 m2 $4,792.15 MXN
• From 501 to 1,000 m2 $9,586.41 MXN
• For surface that exceeds 1,000 m2 $7,972.82 MXN

If your business will be digital, you’ll also need to factor in the cost of setting up an online store. In this article we tell you in detail.

As you can see, the costs of establish a company They will depend on the cost of the notary and paperwork, but also on the line of business and the needs of your business. While the costs for the charter may have a clear mean, the permissions to create a company you need, as well as the furniture, raw materials, local rental, etc. They also have repercussions when creating a company.

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Types of company you can create in Mexico

In this case, we will not focus on the line of business but on the type of commercial companies that can be created in Mexico. When are you going to establish a companyit is recommended that you fully understand the scope of each type of company and be able to choose the one that best suits your interests and that of your partners, if you have any.

It is always good to have advice from professionals on the subject, but I will leave you with the main types so that you become familiar with the terms.

• Limited Companies (SA)
• Company in collective name (SNC)
• Limited Liability Company (SRL or SL)
• Limited Stock Company (SCA)
• Cooperative Society (SC)
• Simplified Stock Company (SAS)

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Limited Company (SA)

Corporations have the capital divided into shares by each partner of the company. There must be at least two and they participate proportionally to the number of shares they own.

The company must have a capital above $50,000MX and the responsibility of each partner is related to the capital that exists.

The partners can remain anonymous and do not have to assume any position if they do not wish to, remaining as capital partners.

Simplified Stock Company (SAS)

It can be built by a single member. It is designed for small and medium-sized companies and you can register electronically with the Ministry of Economy. This option is for companies that do not exceed $5,000,000 MXN per year in revenue.

This can be a good option for those who want to undertake alone, but you have to keep up to date with the regulations or changes that the Ministry of Economy may present.

Company in collective name (SNC)

Here it is also necessary that there be at least two partners and one of its advantages is that it forces the partners to participate in the company’s decisions on an equal basis, without imposing one will on another.

All partners can have an administrative or managerial role and any of the partners have the right to oppose any decision within the company. The company will be dissolved by the death of one of the partners, unless the bylaws stipulate otherwise.

Limited Liability Company (SRL or SL)

In general, family businesses tend to form this type of commercial company because among its characteristics is that the social parts are hereditary. It is through a shareholders’ meeting that decision-making is reached within the company and a council made up of partners or external members can be appointed.

It can be constituted from $3,000 MXN.

Limited Stock Company (SCA)

Here there are two types of partners, limited partners and limited partners. The former will not be able to function as administrators of the company, they are limited to monitoring and authorizing the company as well as paying for their shares. The latter, on the other hand, are those who are obliged to administer the company and may or may not contribute capital.

There is no limit to the number of partners and one advantage is that general partners can attract more investors without having to directly influence the administration or management of the company.

Cooperative Society (SC)

In this type of company, at least 10 partners are needed, who will be assigned certain activities and cannot carry out other activities. It is made up of natural persons with common interests and does not seek profit but rather cooperation and help for the members of society.

Note: Depending on the type of commercial company you choose, you will have different obligations before the SAT.

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Advice and tips before creating your company

Now I leave you some basic advice that the expert in legal matters recommends, so that you take into account when you start your constitutive process:

1. The most important thing is your articles of incorporation, the rest is administrative, if your articles of incorporation are deficient, your company will be deficient. The ideal is to pay close attention to the statutes to establish the scope of your company well.
2. Review and stipulate your stock chart well. This refers to how many shares each partner will have.
3. Review and change your statutes whenever necessary. Everything is subject to modification as long as you do it in front of a notary so that you do not have any legal or fiscal problem.
4. Give time to the procedures. Although some will be faster than others, we recommend that you follow the protocols of each institution and think that it will be a process of a few months. Do not be fooled by people who tell you that they can speed up the procedures.

Now you know how to create a company in mexico. Do not be afraid to legalize your project. Although it seems that there are many procedures, it is worth giving your business a legal identity and forming your own company to access greater benefits and take your entrepreneurial path seriously.

Also, I invite you to read our article so you can learn more about this topic.

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Conclusions

After reading this article, we hope it has become clearer for you how to create a company In our country. Incorporate your own company It is a task that as an entrepreneur you should keep in mind because it will be a great way to move forward with your project. Regardless of the line of business, think that by establish a company you can increase your opportunities.

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