Introduction

If you are considering forming a company in Mexico, this article provides some preliminary information that may be very useful to you. I am Giovanni Braccini, Mexican qualified lawyer. My firm, Braccini&Partners, provides legal, corporate, and tax assistance to both individuals and companies looking to form a company in Mexico and expand their business in the North American country. If you need further information, feel free to contact me at any time by clicking here.

Form a company in Mexico is not a particularly complex process. However, there is preliminary information that can be very helpful for entrepreneurs deciding to take this step.

Is it possible to form a company in Mexico remotely?

The first useful information for those who decide to form a company in Mexico is that it is possible to do so remotely.

If the founding shareholders of the new Mexican company, for any reason, cannot personally travel to Mexico to sign the public deed of incorporation, they can still form the company from abroad. To do this, they just have to grant a notarized power of attorney to a person located in Mexico (and we at Braccini&Partners can receive it for you) to authorize them to sign the public deed of incorporation on behalf of the shareholders who remain abroad.

This power of attorney must comply with specific requirements and content as requested by Mexican law, must be legalized with an apostille (or by consular legalization), and translated into Spanish by a certified translator authorized in Mexico.

Is residency in Mexico a mandatory requirement to form a Mexican company?

If the foreign founding shareholders can personally travel to Mexico to form the company, having Mexican residency is not mandatory.

It is often erroneously indicated to foreign investors that without a Mexican residence permit, it is not possible for them to form a company. However, this information is incorrect. Whether or not one has Mexican residency is not a relevant factor for the incorporation of a company in Mexico.

Even a non-resident can form a company without any issues. The only aspect a non-resident should pay attention to when traveling to Mexico to form the company is to declare at passport control in Mexican airports that the purpose of the trip is “business” and not tourism.

Is it mandatory to have a Mexican partner?

Another useful preliminary information for those who want to form a company in Mexico is that it is not mandatory to have a Mexican partner in the share capital.

Today, almost all businesses in Mexico can be carried out by Mexican companies with 100% foreign capital. I write “almost” because Mexican foreign investment law includes a list, now quite limited, of activities for which a percentage (or all) of the share capital must be reserved for Mexican investors.

As mentioned, however, this list has significantly reduced over the years. This allows foreign investors to decide whether to have Mexican shareholders.

Is it possible to start a single-member company in Mexico?

A fourth preliminary information useful for those deciding to form a company in Mexico is that at least two shareholders are required.

These can be either individuals or companies and, as mentioned above, except for some exceptions, they can also be entirely foreign, but they must be at least two.

There is a type of company in Mexico that allows a single shareholder; however, given the regulatory limitations it presents, it is not practically usable by foreign investors.

What is the minimum initial capital requirement for a Mexican company?

The fifth and final information concerns the amount of initial share capital. Due to some legislative reforms in corporate law, there is no longer a minimum share capital requirement to form a Mexican company.

In theory, as mentioned, since there must be at least two shareholders, the company could be formed with just two Mexican pesos, one peso per shareholder. In practice, such a low amount is not advisable. However, it is also not advisable to form it with an excessively high amount as it would cause unnecessarily high notarial fees.

Unless there are specific needs, it is advisable to start with an initial capital of 10,000 or 20,000 Mexican pesos. However, as mentioned, the law does not require a minimum amount.

If you need further information or clarifications, send us a message using this contact form. We will be get back to you as soon as possible.

DID YOU LIKE THIS ARTICLE?
Read also: “How to form a company in Mexico in 5 Steps“