Mexicans refer to limited liability companies as Sociedad de Responsabilidad Limitada (S. de R.L.). Because it is a quick and simple procedure, LLC registration in Mexico is popular with international investors entering Latin America’s second-largest economy. The fact that it may be carried out by a natural or legal person of any country using capital stated in any currency is only one of its many advantages. Partners’ liability is restricted to the amount they invested in the business. This kind of partnership has grown in popularity, particularly among those who wish to lower their tax obligations.
Features of Mexican LLC
- Partners refer to owners.
- Partners’ liability is only as much as what they invested in the business.
- Directors will be held entirely responsible for the management of the organization.
- There is no need to choose a statutory examiner.
- Shares of the corporation cannot be exchanged publicly or freely transferred.
Mexican LLC specifications
- No minimum capital is necessary.
- At least two partners and 50 maximum partners.
- At least one director (Sole Administrator)
- A business address
- An annual meeting of shareholders is required.
Registering the business name
Before a Mexican company may be incorporated in front of a notary, the Mexican government must first authorize the name of your business. Names must be approved by the Secretary of Economy (Secretara de Economia). To prevent another firm from using the same trademark, it is beneficial to additionally register the trademark with the Mexican government’s IMPI (Instituto Mexicano de la Propiedad Industrial).
Define the capital of your business
The size and organizational structure of your business should be decided upon before beginning operations in Mexico using capital stock or shares. Each shareholder’s or partner’s minimum capital is required to be 1 Peso.
Create and verify the business’s bylaws
The corporate structure, the business’s focus, the identities of its owners, and its assets are all included in the design and authentication of the bylaws for the corporation. The paperwork is authenticated by presenting it to a notary public for registration.
Address of the Mexican company’s fiscal office
To receive their tax ID, all Mexican businesses need a fiscal address. The success of the firm in Mexico depends on choosing the right location, which is determined by the corporate goal of the business.
Register the bylaws with Mexico’s Public Registry
The Public Registry of Mexico will carefully analyze the verified bylaws before you register them there to make sure that every component of the contained statutes complies with Mexican law. Your LLC will be deemed lawfully registered and subject to Mexican law after those bylaws have been approved.
Get a tax ID
Your tax responsibilities will be determined by the type of your company once you have formed your LLC in Mexico and have obtained a tax identification number from the Federal Taxpayer Registry (Registro Federal de Contribuyentes, or RFC).
Obtain a business permit and register the LLC with the local government
You must get a business license and register your LLC with the municipality where it will be situated after registering it with the federal government and applying for a tax ID. This approach will need you to describe your business activity, just as at the federal level.
Establish a bank account
The following papers must be presented to create a corporate bank account:
- A copy of each shareholder’s passport or ID
- A statement attesting to the addresses of shareholders
- A copy of your income tax return and financial documents
- Certificate of company incorporation
Social security Mexican institute registration
The last step is to register your company with the Mexican Social Security Institute (Instituto Mexicano del Seguro Social, or IMSS) to hire workers. Given that payment must be paid to workers’ social security accounts, this is required. If you don’t do this right away, the government will penalize you.
