The following text provides a concise summary of the bureaucratic and legal obstacles an entrepreneur faces when incorporating and registering a new company / firm in Mexico. It outlines the process involved in setting up a commercial or industrial company / firm with a maximum of fifty employees and start-up capital of ten times the economy’s per-capita gross national income (GNI).
1. Get approval to use the company / firm name online and file the draft deed of incorporation with the notary online
The applicant can get approval the intended company name online from the following link www.tuempresa.gob.mx Once reservation of the name is complete, the entrepreneur may decide the notary public that will issue the incorporation deed and then file the draft incorporation deed online to the notary. The notary contacts the entrepreneur via email to give the appointment date to sign the incorporation deed.
2. Sign the deed of incorporation before a notary public, get Tax Registry Number (RFC) and file the deed of incorporation online with the Public Register of Commerce
Notary charges are usually high, from MXN 5,000 to MXN 11,000, if the notary public drafts or gives expert advice on the company bylaws. Before appearing in front of a notary public, the company charter and bylaws needs to be drafted.
In order to issue the tax registration number, particular notaries in Mexico City have signed an agreement with the Ministry of Finance and Public Credit (Secretaría de Hacienda y Crédito Público) (through the Sistema de Administración Tributaria, SAT). The notary who grants the tax registration number is required to also grant the incorporation deed. The notary files the notarized incorporation deed with the Public Registry of Commerce via the website – www.tuempresa.gob.mx – and can also receive the tax number online.
Normally, it can take the notary two or three days to look over the documents and issue the final deed of incorporation for execution by the applicable parties.
3. Register with the Mexican Social Security Institute (IMSS)
The company is required to open individual retirement savings accounts for all employees and register with the Mexican Social Security Institute (IMSS) and the National Workers’ Housing Fund Institute (INFONAVIT). The registration is carried out with the IMSS delegation (delegación) in the company’s administrative area. Usually, the delegations can take between two to five days to be conducted but sometimes they can take a week or more.
4. Register with the local tax administration (Secretaría de Finanzas del Gobierno del Distrito Federal) for payroll tax
Once IMSS registered, the company is required to register with the local tax office. The local tax administration can be viewed at the following link www.finanzas.df.gob.mx In order to register, the tax registration number and the company’s / firm’s postal code are needed.
5. Notice of opening a mercantile establishment before local government (Delegación)
Once the tax registration number has been received, the notice has to be given. As of February 2004, notice may be supplied via the internet (via SAEM www.apertura.df.gob.mx)
6. Register with the National Business Information Registry (Sistema de Information Empresarial, SIEM)
As of January 1997, statutory registration with the National Business Information Registry (Sistema de Information Empresarial, SIEM) has been in place. The company shall be registered with the relevant chamber according to its corporate aim or actions. The fee changes depending on the number of employees and the company’s operation, as can be seen below.
Charges for industry related actions (maximum costs)
Charges for commercial and services related operations (maximum costs)
The fees can change from MXN $100 to MXN $670