THE ART OF
BEING LOCAL
IN MEXICO
Starting a Business in Mexico
Starting a business in Mexico gives you access to the world’s largest Spanish-speaking market and to the wider Latin American region. InterGest Mexico supports foreign companies across the country, including Mexico City, Puebla, Querétaro, Guadalajara, and Monterrey, and runs the subsidiary day to day.
What you need to know about starting a business in Mexico
Short answer: most companies choose the S. de R.L. de C.V. (Sociedad de Responsabilidad Limitada de Capital Variable, the Mexican equivalent of a limited liability company). It offers limited liability and needs at least two partners. There is no statutory minimum share capital, although around MXN 50,000 (approx. €2,500) is advisable to support credibility with banks and customers. Formation costs are roughly MXN 90,000 (approx. €4,500), and the process takes about three months. It involves eight steps, from obtaining a company name permit and signing the notarial deed to registration in the Registro Público de Comercio (the Mexican commercial register). Physical presence is not required.
Interested in other countries where InterGest is present? You can find more about other countries on our overview page starting a business abroad. There, you will find a comparison table of the most common legal forms as well as regional overviews: for example, on starting a business in Singapore, starting a business in India, starting a business in China or starting a business in Hungary.
An overview of all InterGest services can be found on our services page.
Your contact for starting a business in Mexico
Gregor Vorderwülbecke is the Managing Director of InterGest Mexico and your main contact for setting up in the country. He has led the Mexico office since 2017 and guides foreign companies through Mexican administration, notaries and banking. On request, InterGest can also act as the company’s legal representative.
With his team, he handles accounting, tax, payroll, treasury, and reporting. He stays in regular contact with notaries, the tax authority SAT and the social-security institute IMSS, so headquarters always know where the Mexican subsidiary stands. How that partnership works in practice is shown by the story of the Swabian family business Gläser, which made a fresh start with InterGest Mexico.
What are the advantages of starting a business in Mexico?
The advantages of starting a business in Mexico begin with access to the world’s largest Spanish-speaking market, plus the US, Canada and the rest of Latin America. Seven points matter most in practice:
- Large domestic market: around 130 million people and a growing middle class with money to spend. Companies that enter early gain share in one of Latin America’s largest economies.
- Free trade: the USMCA/T-MEC agreement with the US and Canada and the modernised EU-Mexico agreement cut tariffs in both directions. Mexico holds trade agreements with much of the world, so a company based there can serve both markets.
- Nearshoring: production close to the US market, with short supply chains in place of long sea routes from Asia. More groups are moving manufacturing nearer to North America, and Mexico is a frequent choice.
- Limited liability: the S. de R.L. de C.V. separates private and business assets, so the partners usually risk only their capital contribution.
- Skilled workforce: a young, well-trained workforce at competitive cost, with particular strength in industry, engineering and IT.
- Standing: when you open a business in Mexico, your own company gives you access to financial and tax instruments and credibility with banks, customers and authorities. Many local contracts and public tenders require a Mexican entity.
- Openness: most sectors allow 100 % foreign ownership, with restrictions in only a few strategic areas.
- Growth momentum: investment from the US, Europe and Asia meets a growing consumer market, which makes Mexico one of the faster-growing emerging economies.
Even so, getting started is not trivial. Mexico’s heavy bureaucracy, employee-friendly labour law with profit-sharing (PTU), and strict electronic tax and invoicing system (CFDI) require solid preparation and a strong local partner. InterGest Mexico provides the local team to set up your company correctly and manage all ongoing compliance obligations.
Which legal form fits when starting a business in Mexico?
When starting a business in Mexico, most companies choose between the S. de R.L. de C.V. and the S.A. de C.V. Both offer limited liability and carry the suffix "de C.V." (de Capital Variable), which allows a flexible, variable share capital.
The S. de R.L. de C.V. (Sociedad de Responsabilidad Limitada) is the closest match to a limited liability company. Its owners hold quotas (socios), it needs between two and 50 of them, and it suits most subsidiaries. The S.A. de C.V. (Sociedad Anónima) uses shares and fits larger or capital-market structures. In its S.A.P.I. de C.V. (Sociedad Anónima Promotora de Inversión) form, it can be adapted for investors and joint ventures. A company that prefers not to set up its own entity can operate through a Sucursal (branch); in that case the parent company is liable, and the Secretaría de Economía (the Mexican Ministry of Economy) must approve the opening.
Both forms are incorporated before a Notario Público (a state-appointed notary) or a Corredor Público (a licensed commercial broker) and then entered in the Registro Público de Comercio, the Mexican commercial register. There is no statutory minimum share capital, though around MXN 50,000 is sensible as working capital and for standing with banks. The table below compares the options for setting up a company in Mexico:
| Legal form | Recommended share capital | Suitable for | Liability |
|---|---|---|---|
| S. de R.L. de C.V. | No statutory minimum (about MXN 50,000 advised) | Subsidiary, mid-sized firms; equivalent of a GmbH | Limited to the contribution |
| S.A. de C.V. | No statutory minimum (higher advised) | Larger, capital-market structures; like a stock corporation | Limited to the contribution |
| S.A.P.I. de C.V. (Promotora de Inversión) | No statutory minimum | Joint ventures, investor and holding structures | Limited to the contribution |
| Sucursal (branch) | No own capital | Dependent presence of the parent company | Parent company is liable |
Which location fits when starting a business in Mexico?
When starting a business in Mexico, location often matters more than the legal form. Wages, industry clusters and infrastructure vary widely across the country, from Mexico City through Monterrey to the Bajío.
- Mexico City (CDMX): administration, services and head offices, the largest market and the best transport links. Most authorities, banks and international service providers are based here.
- Monterrey (Nuevo León): the industrial and logistics hub of the north, close to the US border. It is strong in machinery, steel and electronics and has long drawn foreign industrial investors.
- Guadalajara (Jalisco): a centre for technology, electronics and software, with well-trained engineers and an active start-up scene.
- Bajío (Querétaro, Guanajuato, Aguascalientes): automotive, supplier and aerospace industry and a centre of nearshoring, with modern industrial parks and short routes to the main markets.
- Puebla: an automotive cluster (around VW and Audi, among others) with a dense supplier network, and the base of InterGest Mexico.
- Border regions: maquiladora zones for export manufacturing into the US. As an added incentive, the northern border region applies a reduced VAT (IVA) rate of 8 % instead of 16 %.
InterGest is based in Puebla, an hour from Mexico City, and serves clients across the country. We advise on where to locate, including the logistics and tax implications. That local knowledge helps when you are setting up a business in Mexico.
How company formation in Mexico works
Company formation in Mexico runs through eight steps, from the name permit to opening the bank account. Here is how to register a company in Mexico in practice:
- Name permit: You reserve the company name with the Secretaría de Economía (the Mexican Ministry of Economy; autorización de uso de denominación). You submit several options, and the approval lasts for a limited time.
- Draft the articles: The articles of association (acta constitutiva) set out the company, its seat, business purpose, capital, partners and management. Careful drafting now prevents problems later.
- Notarial deed: A Notario Público (a state-appointed notary) formalises the incorporation (protocolización). Foreign partners usually act through a power of attorney (poder), so no one needs to travel.
- Commercial register: The company is entered in the Registro Público de Comercio, the Mexican commercial register (Mexico company registration), and receives its registration number (folio mercantil). From that point it exists as a legal entity, and the deed serves as your certificate of incorporation in Mexico.
- Fiscal domicile: You provide proof of a business address (domicilio fiscal), which you need before you can register for tax.
- SAT registration: You apply for the tax number (RFC) with the tax authority SAT Mexico and set up the electronic signature e.firma (FIEL). Without it, almost nothing official or invoice-related works in Mexico.
- IMSS registration: Once you hire staff, you register with social security (IMSS Mexico) within five working days of their start date. The housing fund INFONAVIT is registered at the same time.
- Bank accounts: You open the business accounts and pay in the capital. The bank asks for the RFC, the deed of incorporation and KYC documents (identity checks under "Know Your Customer") on the beneficial owners.
In all, setting up a company in Mexico usually takes about three months until you are fully operational. The deed and the registration are quick. Most of the time goes on the apostille, certified translations and opening the bank account.
What does starting a business in Mexico cost and how long does it take?
What starting a business in Mexico costs depends on the share capital and the work involved for the notary and translations. As a guide, expect around MXN 90,000 (approx. €4,500). The table below breaks down the cost of starting a business in Mexico:
| Item | Duration | Cost |
|---|---|---|
| Name permit and articles | 1–2 weeks | Approx. MXN 5,000–10,000 (~€250–500; advice, translation) |
| Notarial deed (Notario Público) | A few days | Approx. MXN 15,000–30,000 (~€700–1,400; depending on share capital) |
| Entry in the Registro Público de Comercio | 1–3 weeks | Approx. MXN 5,000–15,000 (~€250–700) |
| SAT and IMSS registration | In parallel | Approx. MXN 0–2,000 (~€0–100; RFC, social security) |
| Advice, apostille and translations | Throughout the project | Approx. MXN 20,000–40,000 (~€950–1,900; flat fee) |
| Typical total | ~ 3 months to operational | ~ MXN 90,000 (~€4,300), excl. share capital |
Once the company is running, three charges matter most: corporate income tax in Mexico (ISR) at 30 % on profit, value added tax (IVA) at 16 % (8 % in the northern border region), and statutory employee profit-sharing (PTU) at 10 % of taxable profit. Mexico also withholds 10 % on dividends paid to foreign shareholders, although a double-taxation treaty can reduce this.
Accounting and invoicing have to run through the electronic CFDI system, with monthly filings to the tax authority SAT. Late or incorrect filings lead to penalties quickly. On request, InterGest Mexico takes over accounting, CFDI and tax returns in full and keeps to every deadline.
Which documents do I need for starting a business in Mexico?
For starting a business in Mexico, the notary and the register ask for documents from at least two partners and from the beneficial owners. These are the main legal requirements to open a business in Mexico:
For the company:
- Several proposed company names (for approval by the Secretaría de Economía)
- The seat, business purpose and share capital of the planned entity
- Articles of association (acta constitutiva) with the partner and management structure
- Proof of the fiscal domicile (comprobante de domicilio fiscal)
For partners and directors:
- Passports or official IDs
- A power of attorney (poder) for representation at the formation, if you are not there in person
- Details of the beneficial owners for the bank’s KYC check
If a foreign company is a shareholder:
- A recent register extract and a shareholder resolution from the parent company
- Apostille and certified Spanish translations of every foreign document
InterGest checks the documents in advance and arranges the apostille, translation and filing in the right order, which is where many first attempts go wrong. The notarised deed becomes your certificate of incorporation in Mexico. You will find more detail in our FAQs.
Which legal basis applies when starting a business in Mexico?
The legal framework for starting a business in Mexico is spread across several authorities, and knowing who does what speeds up the process.
The core law is the Ley General de Sociedades Mercantiles (LGSM), which governs company types, formation, governing bodies and liability. The formation is notarised before a Notario Público and entered in the Registro Público de Comercio. On tax, the tax and customs authority SAT issues the tax number (RFC) and runs the filings through the CFDI system.
For staff, the Federal Labour Law (Ley Federal del Trabajo), the social-security institute IMSS and the housing fund INFONAVIT apply. Knowing these responsibilities from the start saves duplicated work and keeps you on schedule.
These bodies and rules apply to every formation:
| Body / basis | Function |
|---|---|
| Ley General de Sociedades Mercantiles (LGSM) | Company law; governs legal forms, formation, bodies and liability |
| Secretaría de Economía | Approval of the company name |
| Notario Público | Notarisation of the articles of association |
| Registro Público de Comercio | Entry in the commercial register in Mexico (Mexico company registry) |
| SAT (Servicio de Administración Tributaria) | Issuing the tax number (RFC), levying taxes, CFDI; SAT Mexico |
| IMSS / INFONAVIT | Social security for employees and mandatory housing-fund contributions |
| Ley Federal del Trabajo | Federal Labour Law; employment contracts, dismissal, profit-sharing (PTU) |
| ISR / IVA | Corporate income tax in Mexico (30 %) / VAT (16 %) |
Mexico requires complete electronic accounting backed by CFDI invoices, which keeps tax audits transparent but leaves little room for error. Labour law favours employees, including the PTU profit-sharing. InterGest Mexico manages these obligations for you and reports the figures back to headquarters.
How do I finance starting a business in Mexico?
Financing for starting a business in Mexico usually draws on a mix of sources:
- Equity from the home country: the standard route. The contribution goes into the company as share capital, and it is wise to keep a buffer for the first months of running costs and social charges.
- Shareholder loans: loans from the parent are common and flexible. Document the contract and a market interest rate. Mexico limits the deductibility of interest when related-party debt is too high (the 3:1 thin-capitalisation rule) and requires transfer-pricing documentation.
- Local bank loans: Mexican banks will finance an established business model, but they want collateral and a track record. In the start-up phase, equity is the more reliable route.
- Grants and incentives: development banks such as Nafin and Bancomext can help, as can incentives for nearshoring and export manufacturing, such as accelerated depreciation.
The right mix depends on your sector, capital needs and timing, but it is usually equity plus a shareholder loan. InterGest reviews the capital structure and prepares the paperwork, so banks and investors get a clear picture and profit repatriation is not blocked later.
Underestimating bureaucracy and local rules
Mexico is administration-heavy. The name permit, notary, register, SAT and IMSS all interlock, and foreign documents need an apostille and certified translation. Underestimating the effort can cost weeks, one of the real risks of doing business in Mexico.
We can sequence the steps for you and handle the official channels together.
Underestimating labour law and profit-sharing
Mexican labour law favours employees, dismissals are expensive, and the 10 % PTU profit-sharing is mandatory. Hiring employees in Mexico on a home-country template leads to surprises, not least on Mexico payroll taxes.
We set up employment contracts, payroll and social contributions on a sound legal footing.
Sorting out accounting, CFDI and tax deadlines too late
Mexico requires electronic accounting with CFDI invoices and on-time ISR and IVA filings. Leaving this too late risks penalties and input-VAT problems in the first quarter.
We put accounting, CFDI and the tax deadlines in place from the start and keep them on track.
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What services does InterGest offer forcompany formation in Mexico?
Short answer: for company formation in Mexico, InterGest Mexico guides foreign companies from the choice of legal form through formation to the day-to-day running of the subsidiary. The Puebla team works in German, English and Spanish and reports figures to headquarters in the format they expect.
InterGest Mexico is led by Gregor Vorderwülbecke, who has run the office since 2017. For foreign parents, the team bridges Mexican administrative, banking and tax practice and the reporting standard back home, giving you a single contact across the life of the subsidiary.
- Formation: we select the legal form with tax and liability in mind, coordinate the notary and translators, and prepare the founding documents. On request, we act as the company’s legal representative. We manage the name permit, the notarial deed and the entry in the Registro Público de Comercio.
- Consulting: we map location, legal form and route to market onto the situation in Mexico before anything is decided. Our management consulting in Mexico runs from the first idea to day-to-day operations.
- Accounting: our team runs the ongoing accounting in Mexico and CFDI invoicing on the ground, so you never handle receipts or the Mexican ledger. Your accountant in Mexico prepares the monthly and annual accounts and the reporting for headquarters. Our accounting services in Mexico and tax services in Mexico, from CFDI invoicing to the annual close, stay in one place.
- Tax: a tax advisor in Mexico answers recurring questions on ISR, IVA, PTU and Mexico payroll taxes, keeps the monthly SAT filings on track and works with local specialists.
- Payroll and HR: our payroll in Mexico runs salaries under Mexican law and files contributions to IMSS Mexico and INFONAVIT. Our payroll solutions in Mexico cover payslips, statutory filings and year-end. For human resources in Mexico, we add HR services in Mexico and HR consulting in Mexico, with recruitment in Mexico and executive search in Mexico to fill your roles. An automotive supplier describes how InterGest Mexico took over payroll and employment contracts for its Mexican operation.
- Controlling and reporting: we consolidate the figures every month and provide cross-border reporting, on request in your group’s standard. Headquarters always know where the subsidiary stands.
- Payments and collection: we issue invoices and track incoming payments. We also handle Mexico debt collection, out of court first and through local lawyers where necessary.
- Administration: on request, we manage the company on a fiduciary basis, run the bank accounts and review contracts before they reach you for signature.
For the full range, see our page with all InterGest services. You have one contact for all of it.
Ready for your market entry in Mexico?
When will you start?
How to register a company in Mexico?
You register a company in Mexico in eight steps: the name permit, the articles, the notarial deed, entry in the Registro Público de Comercio (the commercial register), the fiscal domicile, SAT registration (the tax number RFC with the tax authority SAT), IMSS registration (social security) and opening the bank account.
With every document apostilled and translated, Mexico company registration takes about three months. You do not need to appear in person; a power of attorney (poder) is enough.
You will find the full description in the Steps section above, and on request InterGest runs the whole procedure for you.
How much money do you need to start a business in Mexico?
As a guide, around MXN 90,000 (about €4,500), mostly for the notary, register, SAT and IMSS plus apostille and certified translations. That is the typical cost of starting a business in Mexico.
On top of that comes the recommended share capital of around MXN 50,000, which stays in the company as working capital.
You will find an overview of the cost of setting up a business in Mexico in the Costs & duration section above.
What are the legal requirements to open a business in Mexico?
For the company itself, you need the name, seat, business purpose and capital, plus proof of the fiscal domicile (domicilio fiscal).
For partners and directors, you need passports or IDs and, where relevant, a power of attorney (poder); for corporate partners, a register extract. Any foreign document needs an apostille and a certified translation.
The full list is in the Documents section above.
What is an S. de R.L. de C.V. in Mexico, and when does it fit?
The S. de R.L. de C.V. (Sociedad de Responsabilidad Limitada de Capital Variable) is the Mexican equivalent of a limited liability company; an s de rl de cv in Mexico is the usual vehicle for foreign parents.
It suits most subsidiaries: limited liability, at least two partners and no statutory minimum capital. For larger, capital-market structures, the S.A. de C.V. is the alternative.
You will find a side-by-side comparison in the Legal form section above.
How are companies taxed in Mexico?
Corporate income tax in Mexico (ISR) is 30 % and VAT (IVA) is 16 %.
On top of that comes the statutory employee profit-sharing (PTU) of 10 % of taxable profit, and accounting and invoicing must run through the electronic CFDI system.
On request, InterGest Mexico handles the ongoing accounting and tax returns in full.
Is Mexico a good place to start a business?
For most foreign investors, yes.
The biggest draws are access to the largest Spanish-speaking market, free trade with the US and Canada (USMCA/T-MEC) and the EU, a strong nearshoring position and qualified staff.
Add limited liability through the S. de R.L. de C.V. and, in most sectors, 100 % foreign ownership.
The full list is in the Advantages section above.
Can a foreigner start a business in Mexico?
Yes. Starting a business in Mexico as a foreigner works in most sectors with 100 % foreign ownership, and foreign individuals and companies alike can be partners.
The main extra steps are the apostille and certified translation of foreign documents and the appointment of local representation, which InterGest can provide.
That makes opening a company in Mexico realistic even without a local co-founder.
What are the challenges of doing business in Mexico?
Three come up in practice: heavy bureaucracy, employee-friendly labour law including PTU profit-sharing, and strict electronic accounting and tax duties (CFDI). Go in unprepared and these become the real risks of doing business in Mexico.
None of them is an argument against entering the market; they simply call for preparation and a partner who knows the ground.
That is exactly what InterGest Mexico is for: we know the hurdles and clear them before they slow the project down.
Which authorities are involved in company formation in Mexico?
The Secretaría de Economía approves the company name, a Notario Público notarises the formation, and the Registro Público de Comercio, the commercial register in Mexico, enters the company.
SAT Mexico issues the tax number (RFC) and collects the taxes, while IMSS Mexico handles social security for employees.
The table in the Legal basis section lists every body and what it does.
Why should I choose InterGest for starting a business in Mexico?
Unlike a pure registration agency, InterGest stays with you long after the company is on the register. One personal contact owns formation, accounting, tax, payroll, HR and reporting, so nothing slips between separate providers.
On the ground, that contact is Gregor Vorderwülbecke, who runs InterGest Mexico in Puebla.
Then there is the network: InterGest has worked in over 50 countries since 1972, so once you expand to Mexico you can later use the same structure in Germany, France or China. See all InterGest services.