Copyright 2006

National Law Center for Inter-American Free Trade

InterAm^SM Database

28 de abril de 2006

MEXICO

Requirements for Foreigners to Set Up a Business in Mexico

Mexican Corporation - Sociedad Anónima

The following is a brief explanation of the basic and key incorporation procedures for purposes of forming a Mexican corporation - Sociedad Anónima. The Sociedad Anónima is the most common form of business organization in Mexico. All of the laws, regulations, and authorities referenced in this document are from Mexico.

First: A foreigner entering Mexico with the purpose of incorporating must apply for a business visa with the National Migration Institute - Instituto Nacional de Migración. A business visa grants a person the legal standing to enter and do business in Mexico.

General Population Law - Ley General de Población. Art. 32-75. http://natlaw.com/subscribe.php?url=/interam/mx/im/st/stmxim1.htm

Regulation of the General Population Law - Reglamento de la Ley General de Población. Art. 139-194.

http://natlaw.com/subscribe.php?url=/interam/mx/im/rg/rgmxim2.htm

Manual of Migration Procedure - Manual de Trámites Migratorios. Published in the Mexican Diario Oficial, September 21, 2000. Migration Procedure - Trámite Migratorio. TMN-I-04.1 - TMA-C-56. http://natlaw.com/subscribe.php?url=/mexico/diario/files/0009/do200921.exe

Second: One must designate a name for the Mexican corporation. The name must be authorized by and registered with the Secretariat of Foreign Relations - Secretaría de Relaciones Exteriores. Each Mexican State has at least one such office for this procedure.

Foreign Investment Law - Ley de Inversión Extranjera. Art. 15.

http://natlaw.com/subscribe.php?url=/interam/mx/fi/st/stmxfi2.htm

Regulation of the Foreign Investment Law and of the National Registry of Foreign Investment - Reglamento de la Ley de Inversión Extranjera y del Registro Nacional de Inversiones Extranjeras. Art. 13.

http://natlaw.com/subscribe.php?url=/interam/mx/fi/rg/rgmxfi2.htm

Third: One must hire a notary public to incorporate the Mexican corporation. The incorporation procedure must be done within 90 days following the authorization by the Secretary of Foreign Relations - Secretaría de Relaciones Exteriores. Once one meets all of the requirements of the notary public, one will have the by-laws and all proxies necessary to be considered a Mexican corporation - Sociedad Anónima. Any modifications to the by-laws of the already-registered corporation must be authorized by the Secretary of Foreign Relations - Secretaría de Relaciones Exteriores.

http://natlaw.com/subscribe.php?url=/interam/mx/fi/rg/rgmxfi2.htm

General Law of Mercantile Societies - Ley General de Sociedades Mercantiles Art. 87 – 206.

http://natlaw.com/subscribe.php?url=/interam/mx/bs/st/stmxbs2.htm

Fourth: One must obtain a corporation Tax ID number - Registro Federal de Contribuyentes, RFC. This Tax ID application date is considered the starting point of the corporation, and any other registrations, authorizations and information requirements by other authorities also relate to that Tax ID number and date. One must also have a Tax ID number to comply with the State and Federal tax regulations. The corporate Tax ID number is obtained in the Mexican State where the company is located, at the offices of the Tributary Administration Service - Servicio de Administración Tributaria, SAT.

Tax Federation Code - Código Fiscal de la Federación. Art. 27.

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Regulation of the Tax Federation Code - Reglamento del Código Fiscal de la Federación. Art. 14, 15, 16 and 18.

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