Procedures and permits to open a business in Mexico 2022

Hello future entrepreneur! If you came to this post, it is because you are thinking of opening a business or you already have one, and you want to formalize it. In most cases, entrepreneurship entails some difficulties; from choosing the right vendors, doing the paperwork and paperwork to set up a business, to taking inventory and planning your business.

Don’t worry, it’s worth it. Entrepreneurship is comforting and offers many freedoms, but it also implies responsibilities. In this post I am going to list the procedures and permits to open a business in Mexico to guide you a little on this path.

Before I begin, I want to ask you: Do you already have an online store to offer your products or services digitally? If the answer is no, pay attention to the image below and get your free trial. 😉

I will present the procedures in chronological order, since, in some cases, you need some to start other procedures. Let’s get started!

Permits to open a business in Mexico 2022

• Authorization to use the name or company name
• Request for the electronic mercantile folio
• Articles of incorporation of the meeting of the commercial company
• Registration in the Federal Taxpayer Registry (RFC and e.signature)
• Trade mark
• Employer registration with the IMSS
• Opening of bank account for moral person
• Notice of opening of commercial establishments, companies or businesses
• Other procedures for physical businesses

Now I am going to explain the procedure to carry out each procedure.

Authorization to use the name or company name

Authorization for the use of a company name (or business name) is carried out at the Ministry of Economy. Step number one to establish a company is to seek this authorization to use the name of the legal entity with which your company will be legally identified and avoid duplication of business name between several companies.

In other words, it is the legal name under which the company will carry out all its administrative procedures such as paying the bill, hiring staff, registering trademarks, receiving or raising claims, etc. It is important that you are sure that another company is not named after yours, because you do not want to receive the demand of another business, right? An example of a company name could be Vend en Línea SA de CV

To carry out this procedure you need to have your advanced electronic signature. Here is an opportunity to resolve a frequent question, because this is not explained in the requirements and many people wonder… if my company asks me for authorization to use the company name for the electronic signature? Simple, with the electronic signature of a natural person, either yours or a partner of the company.

You can go to the offices of the Ministry of Economy or carry out the process online ─both cases have official validity─. You get a response within a maximum of 48 hours and, subsequently, you must notify the use of this company name within the first 180 calendar days.

💡 Tip: We recommend registering 3 or 4 options at the same time. This to speed up the process in case your first option is already registered.

If you want to process your authorization you can enter the Single Authorization Module (MUA). Or, go to the Insurgentes Tower, General Directorate of Regulations at Avenida Insurgentes Sur 1940, 1st floor, Colonia Florida, Álvaro Obregón Delegation, CP 01030, Mexico City, Monday through Friday from 9:00 a.m. to 2:00 p.m.

📌 Remember: the procedure is free, but if you do it through a manager or lawyer you must cover the corresponding fees.

Steps to process an authorization to use a company name

1. Enter the portal of the or go to the offices.
2. Accept the privacy notice and terms and conditions.
3. Enter your access credentials ─Certificate (cer), Private key (key), private key password and RFC─. This includes that you must upload the files of your advanced electronic signature or e.signature, that is, the files that are saved on your USB when you are a natural person.
4. Click the “Request a DoRS” button.
5. Write the name of the company name or company name that you chose for your company.
6. Send the opinion of the request.
7. Select the type of legal regime that your company will have ─Cooperative, Microindustry – crafts, Society and association or to be defined to select it later─ and the legal regime.
8. Review the data and sign the authorization request with your certificate (cer), private key (key) and password.
9. Remember to verify the opinion of your application in a maximum time of 48 hours. For this you will have to re-enter the single Authorizations module with your access credentials and check the “My requests” section.

💡 Tip: For companies that do not exceed $5 million MXN in annual revenue, the SAS (Simplified Stock Company) regime is ideal because the entire process can be carried out electronically in 24 hours and the faith of a notary public is not necessary.

Request for the electronic mercantile folio

There are two ways to prioritize registration with the Public Registry of Commerce and obtain your business folio in order to operate.

electronics

Through a notary public, who will send the documentation through an authorized platform.

Physical

You must deliver the following documentation at the windows of the offices of the Public Registry of Commerce.

1. precoded form
2. Corresponding testimony, policy or certificate
3. USB with documents signed electronically by a notary public
4. Payment of rights $3,485 MXN

Constitutive Act

The articles of incorporation are the document that every company needs to indicate the functions of the directors, as well as the percentages of participation of partners or owners. In a few words, it is like a birth certificate from a company and is a requirement for many other procedures.

This procedure is carried out at the Ministry of Foreign Affairs or before a notary public at any notary’s office.

Requirements to process articles of incorporation:

1. Authorization of use of name or company name
2. Questionnaire provided by the notary
3. Birth certificate, official identification and tax identification card of the partners

(Approximate time 6 months)

Registration in the Federal Taxpayer Registry (RFC and e.signature)

This is one of the requirements to create a company legally. Registering it in the SAT is not a complicated procedure.

The requirements will depend on how you are going to register it; as a natural person or legal entity. At this point, we recommend that you consult with an accountant to obtain personalized advice and find out which regimen best suits your activities.

But, generally, companies must register as legal entities when there are several partners. To know the step by step of and the specific requirements of each regimen, I share the following article:

Learn more:

Article

Trade mark

What if you spend time and effort to launch a business and by not registering it you lose everything? Unfortunately, this scenario is not out of reality. Many brands have lost everything by omitting or postponing their trademark registration.

To avoid this, we recommend that you register your trademark as soon as possible. This way, you will have exclusive use of your brand name and prevent someone from stealing your brand.

The documents required to register your trademark are:

• Request for Protection of Distinctive Signs
• Proof of payment
• And other additional documents that you can consult in the , in case there are two or more people who will carry out the registration.

Learn about the process in Mexico in detail, visit the following article by Karla Reyes:

Take note…

Article

Employer registration with the IMSS

Another requirement to set up a company is employer registration. As a legal person, it is your obligation to register your employees and collaborators with the Mexican Institute of Social Security (IMSS) and for this you need your employer registration. To process it, you must obtain your pre-registration and go to an IMSS sub-delegation to complete the process.

Steps to request the IMSS employer registry

1. For the online pre-registration you need to have at hand CURP, e.signature of the legal representative of the company and email.
2. Go to IMSS digital to the ‘Employers’ tab and click on ‘Alta Employer Legal Person’ and log in to your account.
3. Fill out the online form and follow the instructions.
4. At the end of the previous step, you will be assigned an appointment and proof.
5. Go to the sub-delegation that corresponds to you to finish the process. Do not forget to go with the record and information of your company.

Opening of bank account for moral person

For administrative and accounting purposes, the ideal is that the income and expenses of the company are managed from a special account for the company. In this way, you facilitate and avoid problems with the SAT.

Go to the bank of your choice to carry out the process. This procedure can be carried out by the legal representative or the person who has the powers to carry out these procedures through a power of attorney for opening and managing bank accounts.

Requirements to process a bank account for your company

1. Constitutive Act
2. Official identification of legal representative
3. Tax identification card or RFC

This will help you…

Article

Notice of opening of commercial establishments, companies or businesses

This procedure is carried out in the SAT. It must be carried out by those businesses that open a local, establishment, branch, warehouse or any place in which fixed or semi-fixed commercial activities are carried out.

Follow these steps within the SAT portal:

1. Select “RFC Procedures” in the Company mode.
2. Click on “Submit the notice of opening of establishments of your company”.
3. Enter RFC and password.
4. Fill out the form and verify that the information has been captured correctly.
5. Print or save your receipt.

📌 Important: have your current e.signature and password on hand.

Other procedures for physical businesses

There are some extra permits for businesses that need a physical location or point of sale.

• Land use, building and construction licenses
• Civil protection licenses
• Operating license

Land use, building and construction license

It is also known as a land use permit, this must be processed in case the place you rent or buy for your business does not have this permit ready. To avoid this procedure, we recommend you look for a place that already has this permit.

In case the land use is different from what you need; You will have to process it at the municipal agency or local mayor’s office. The requirements and documents necessary to carry out this procedure will depend on the mayor’s office or municipality where you carry out the procedure.

The documents required to process the land use license are:

• Constitutive Act
• Valid official identification
• Job title
• Proof of address
• Location Sketch
• property deeds
• Flat…