Can I create a Company in Mexico as a Foreign?

If you are a foreigner and want to open a branch of your company abroad, or you want to start a business in Mexico and create a company, this information is for you.

Can I create a company in Mexico as a foreigner?

Yes, a foreigner can create a company in Mexico; to do so, they need to meet some requirements.

Requirements to create a company in Mexico as a foreigner

• Valid passport
• Temporary or Permanent Resident Card
• RFC (Tax number)
• Proof of tax situation
• Proof of address

One of the most important points when formalizing a venture is choosing the appropriate legal structure. The most used legal structure in Mexico is the Sociedad Anónima de Capital Variable, abbreviated as S.A. of C.V.

You can check the complete Guide to Obtain Visas, Residences in Mexico and Immigration

What is a Variable Capital Limited Company (S.A. de C.V.)?

A S.A. of C.V. It is a type of commercial company, it is one of the most used types of companies in Mexico, due to its flexibility and characteristics that make it attractive for entrepreneurs looking for security and growth possibilities in their businesses.

This type of company is commonly used by companies that do not need risk investment, are scalable and have no income limit.

Characteristics of a S.A. of C.V.

• A minimum of 2 partners are needed and each one must have at least one share.
• It is maintained with its own resources.
• The shares into which the share capital is divided are represented by share certificates that serve to accredit and transmit the quality and rights of the partner.
• Shareholders can be natural or legal persons.
• Represents for-profit organizations.
• You do not need a minimum share capital to start.
• It can be used for any line of business.
• The most important body is the shareholders’ meeting, which is divided into ordinary and extraordinary meetings, depending on the topic to be discussed.
• The supervision of the company is in charge of one or more commissioners, temporary and revocable, who may be partners or people outside the company.

Advantages of a Variable Capital Public Limited Company

• There is no minimum amount of share capital when establishing a Public Limited Company.
• Shareholders have the right to capital and profits.
• The responsibility and obligation of the shareholders is limited to the payment of their contributions.
• The rights of the partners are divided into: economic (profits) and corporate (voting in assemblies).
• Its administration can be carried out by a single individual or a council.
• Upon death, the shares of a partner can be inherited to whomever that person so wishes.

Disadvantages of the Variable Capital Public Limited Company

Although the S.A. of C.V. It is the most popular society in Mexico, its organization is considered rigid for the current needs of entrepreneurs.

The most common disadvantages are:

• It is not allowed to have shares in the name of the company itself.
• Day-to-day decisions are in the hands of the designated management body.
• To carry out an increase in variable capital, it is necessary to formalize a meeting minutes before a notary public.

How to create a S.A. of C.V. in Mexico as a foreigner?

• Request the use of company name or name before the Ministry of Economy.
• Draft the corporate bylaws and formalize the articles of incorporation before a notary public.
• Register the articles of incorporation with the Public Registry of Property and Commerce.
• Register the company in the RFC.

If you need to open a company in Mexico, we can help you.

Contact us to advise you on Starting a Company in Mexico or obtaining Residence. We surely have options for you.

It is important that you know that all advice generates a cost.

Contact us for immigration issues (English): +52 9981253810 

W.App English:  https://wa.me/529981253810

Asesoría en temas migratorios: +52 9982029043

ESPAÑOL 🇪🇸