Mexico is considered to be quite an interesting country to start and run a business. This interest is due to the country’s openness and minimal interference and influence of the authorities on the economy.
However, a person who has expressed a desire to become a Mexican entrepreneur must know the culture of this state, as well as have an idea of the state of its economy, legal system, and political situation in the country.
Business in Mexico is a great chance to open your own business not only for residents of nearby states but also for emigrants from many other countries.
Opportunities for an expatriate businessman
Business migration is quite popular in Mexico. And this is not surprising – this country is ready to provide conditions for entrepreneurial activity to any person. However, if you want to do an official business in Mexico on a general basis, you need to fulfill some government requirements.
It is difficult to name the exact amount of investments since it changes every year. It is only known that this amount is significantly higher than requested by other Latin American countries but significantly lower than in European countries. However, in this way it is possible to obtain an investor visa, which will allow you to engage in a specific type of activity in Mexico.
Business registration is required by law
Mexican law allows both legal entities and individuals to create and own companies. The following types of enterprises can be opened on the territory of the state:
- joint-stock;
- mixed-capital corporations;
- cooperatives;
- limited liability companies.
However, first, you need to obtain permission to conduct activities in the Department, which specializes in foreign affairs. To do this, you must have identity documents with you. If you already have business partners, you will also need their documents.
The Department will then ask for your business plan, details of the future business, and how it will be run.
Since the Mexican authorities closely monitor the activities of foreign companies, it is necessary to obtain the right to operate an enterprise with foreign capital and investments. Be prepared for the fact that the authorities may require you to submit full reports on the activities of the company in the proper form and within a certain period.
Statutory fund
To open a small business, company, or cooperative, the minimum amount of the authorized capital must be at least 3,000 pesos or 170 US dollars. If a businessman wants to open a large company or corporation in Mexico, the authorized capital must be at least 50,000 pesos (2,826 US dollars).
Main business activities in Mexico
Mexico’s economy is quite diverse. Most enterprises are focused on the extraction of oil, gas, and various metals. Metallurgy, chemistry, and mechanical engineering are developing. Investments in Mexico from the United States are of great importance – almost all cars that are produced in
Mexico is produced by world leaders: Ford, Chrysler, and General Motors.
The Mexican authorities are very interested in attracting foreign investors. For this purpose, for a long time, special programs have been developed to create appropriate conditions for attracting capital. As a result, Mexico has become one of the most attractive countries for financial investments and business development.
The most promising business areas
One of the most profitable activities in Mexico is the purchase and construction of the real estate. Over the past 10 years, Mexico has become one of the most popular countries for recreation and residence, so more than 50% of investors are ready to invest their material resources in Mexican real estate.
Every year, millions of paying tourists come to Mexico who can afford to rent an apartment or a villa. In addition, the cost of real estate, in general, is quite low, so many Canadians, Americans and Europeans can afford to buy luxury housing in Mexico, which in the United States would cost several times more. In this regard, this type of business brings colossal income. Cancun and the Caribbean coast are especially popular for investments – there are always a lot of people who want to buy a house here.
Taxes in Mexico
The owner of real estate in Mexico pays the following types of taxes:
- purchase tax, which is 2% of the value of the property;
- annual property tax;
- a tax that is paid on the sale of real estate.
More often than not, the value of the real estate in Mexico is slightly undervalued compared to the real value, so taxes do not amount to large amounts.
If you own a business in Mexico, rent out the property, or own a bank account, you will have to pay income tax. In addition, the Mexican Tax Code provides for taxation of income of citizens of the country and foreigners received around the world.
Buying ready-made business
Under Mexican law, foreigners can buy and sell real estate in Mexico. The same applies to the tourism business.
A banking transaction involves the purchase or sale of real estate through a bank chosen by the buyer. The bank becomes the trustee and the buyer becomes the beneficiary. The beneficiary controls the use of the property and makes all decisions regarding the investment.
