How to set up a Nonprofit Organization in Mexico as a Foreigner?

If you’re a foreigner looking to start a non-profit organization in Mexico, forming a Nonprofit Organization or a Civil Association (A.C.) is a legal and strategic way to carry out social, cultural, educational, or humanitarian activities. A Nonprofit Organization is a recognized legal entity that allows groups to operate without profit motives and qualify for government support and tax benefits—if all legal steps are followed.

This guide outlines the step-by-step process to legally register a Nonprofit Organization in Mexico, including legal requirements, documentation, and strategic tips to ensure compliance and eligibility for public or private funding.

How to set up a Nonprofit Organization in Mexico as a Foreigner?

1. Minimum of Three Founding Members

The law requires that at least three individuals come together to create a Civil Association (A.C.). These individuals can be either Mexican or foreign nationals, but at least one member must be Mexican. All members must agree on the organization’s purpose and objectives. This diversity is essential for decision-making, as it allows for consensus and facilitates internal operations.

Each founding member must present a valid official ID (INE or passport) CURP, and must have a Tax Number (RFC).Foreign nationals who wish to be part of a Civil Association in Mexico must have legal residency in Mexico.

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

2. Define Your Social Purpose

Clearly defining your organization’s social purpose is essential. This is the main activity the association will carry out and must focus on creating positive social impact. It should be consistent with the guidelines established by the Tax Administration Service (SAT), especially if you plan to become an Authorized Donee eligible to issue tax-deductible receipts in Mexico.

3. Draft the Bylaws (Statutes)

The bylaws govern the internal operations of the association and must comply with Mexican law. They should include:

• The name of the organization (check availability with the Ministry of Economy).
• Purpose and goals of the association.
• Duration (usually indefinite).
• Legal address (optional in bylaws for flexibility).
• Geographical scope (national or international).
• Membership rules: admission, removal, and responsibilities.
• Roles and responsibilities of the governing board.
• Structure of the General Assembly and voting procedures.
• Accounting and fiscal policies.
• Initial assets and funding sources.
• Dissolution process and distribution of remaining assets.
• Mandatory clauses related to donations and asset use for Authorized Donee status.

4. Hold the Constitutive Assembly

Founding members must organize an official meeting to adopt the bylaws, create the association, and appoint key officers (President, Secretary, Treasurer). This meeting is documented in the Acta Constitutiva (Constitutive Act).

5. Legalization by Notary and Public Registry

A Mexican Notary Public will legalize (notarize) the Constitutive Act and bylaws. The association must then be registered in the Public Registry of Property and Commerce, which gives it full legal standing in Mexico.

6. Obtain the RFC (Federal Taxpayer ID)

Once registered, the association must obtain its RFC (Registro Federal de Contribuyentes) from the SAT (Tax Authority). This is required for tax compliance and opening a bank account.

7. Open a Bank Account in the Name of the Association

Opening a bank account for your Civil Association in Mexico ensures transparent financial operations. The account must be in the name of the association, and the RFC is required for this process.

8. Register in the Federal Registry of Civil Society Organizations (CLUNI)

To access government funds, grants, and public programs, you must apply for the CLUNI (Unique Registration Code) from the Federal Registry of Civil Society Organizations (Registro Federal de las OSC). This registration enables collaboration with federal institutions.

9. Register Your Trademark (Optional but Recommended)

Protect your association’s name and logo by registering them as a trademark with the Mexican Institute of Industrial Property (IMPI). This helps establish your brand identity and prevents unauthorized use.

10. Apply for Authorized Donee Status (Optional)

If you want to receive tax-deductible donations in Mexico, you must obtain Authorized Donee Status from the SAT. Requirements include:

• Including irrevocable clauses in your bylaws about asset use and dissolution.
• Committing to use all donations exclusively for your social purpose.
• In the event of dissolution, transferring remaining assets to another authorized donee.

Key Roles Within a Civil Association

• President (mandatory): Legal representative of the association.
• Secretary (mandatory): Manages documentation and meeting records.
• Treasurer (mandatory): Handles financial resources and reporting.
• Board Members (optional): Support in decision-making and project implementation.
• Advisory Council (optional): Provides technical support and strategic guidance.

Ready to Start Your Civil Association in Mexico?

Forming a Civil Association (A.C.) as a foreigner in Mexico is 100% possible with the right guidance. Our team offers legal consulting services for non-profit formation in Mexico, including notarial coordination, bylaws drafting, SAT registration, and CLUNI processing.

Contact us today to receive personalized assistance and start your A.C. the right way!

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