Read Why Doing Business In The Country of Mexico Is Something To Consider And Setup
Mexico is the second largest economy in Latin America. Foreign investors seem to be eager to do business in the country of Mexico due to its positive economic status. Mexico has declared the lowest unemployment rate for ten years having 3.2% of their economically active population. Also, it arranges two thirds of Latin American exports. It has been focusing on expanded trade deals. Recently, they signed the CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) which is widely known as one of the largest when it comes to beer, mineral and oil production. Truly, with the country’s effort to make their economy boost Mexico has been the leading grantor to the service sector. Their economy is also balanced and by 2050 Mexico is expected to rank 7th largest global economy.
Although it is known for its stable economy there might be a few things you need to know before you plan to do business in Mexico. First, one of the largest factors that has affected its economy is their macroeconomic variables in United States. Approximately, 80% of exports are with the US. For others it can bring a little trouble to Mexico’s economy for its worsened relationship with other northern countries. The second factor is that recently this September 2017 Mexico encountered a massive earthquake which affected their short-term economic growth with lacking 0.8%.
In doing business in Mexico you need to consider these to be able to have a good start. First, you need to draft and sign a Power of Attorney. With this document you can be able to start a business in Mexico without having your presence during the processing of your company.
Next on the list choosing the type of legal structure for your business needs. This is in two categories: LLC (Limited Liability Corporation) or a Stock Corporation.
- An LLC (Sociedad de Responsabilidad Limitada, S.R.L). An LLC serves as your protection as an investor and by all means not personally liable to any debts or funds of the company while Stock Corporation means that shareholders are only responsible for their own contributions.
Third step in doing business in Mexico is of course choosing your shareholders. There must be at least two shareholders. They can be an individual or a company. It is necessary to inform your shareholders their weight of responsibility of the company and of course you all need to share basic personal information. Fourth is the most important part: registration of your company to the Public Registry of Commerce and the National Registry of Foreign Investment. Second to the last step is to attain Tax ID number (RFC). In order for you to get that you must simply register with the Ministry of Finance and Credit (Secretaría de Hacienda y Crédito Público).
This process will take you 1 to 3 days. Lastly, open a corporate bank account. You never know when your business will boom so having a corporate bank account is handy to your company.