The Mexico Limited Liability Company (Sociedad de responsabilidad limitada)
- Our customers may register a limited liability company in Mexico. Which needs only;
- 2 shareholders, and
- 1 director, all of them may be local or foreign citizens.
- The shareholders and directors may live outside of Mexico. One person, which is usually called as the legal representative, shall be appointed to liaise with the local authorities. The legal rep shall be local resident of the country. We may provide professional services to our valued customers.
- There is no requirement of minimum share capital for the company. Yet, we suggest our valued customers to have a contribution of at least USD 200 (MXN 3,000). Out of this amount, 50 percent shall be paid-up at the time of registration of the company in Mexico.
- After the completion of incorporation of the Mexican company, it is required to file annual financial statements duly audited.
- Setting up a limited liability company is the best option for international companies which needs lower share capital and the entity can be wholly owned by the foreign investors as well. Most of our valued foreign investors opt for this option while expanding their businesses in Mexico.
The Mexico Export Processing Zone Company (Maquiladora company)
- As compared to the other neighboring countries, the export processing zones in Mexico are not allocated geographically. Most EPZ entities are situated near the border of US like Tijuana, Ciudad Juarez and Nuevo Laredo.
- All the companies and other entities in Mexico may submit application for incorporation only if, the export of the company is higher of;
- USD 500,000, or
- 10 percent of the yearly sales.
- The best use: This entity can be used for export-related businesses, in particular those companies that target North American markets to gain more revenues from it.
The Mexican Stock Corporation (Sociedad Anonyma)
- A Mexican Stock Corporation (SA) may be registered with;
- At least a share capital of MXP 50,000, 20 percent out of this amount shall be paid-up at least,
- 2 shareholders, and
- 1 director
The director and shareholders don’t need to be local residents of Mexico.
- The best use: We suggest establishing this type of business to our customers who are interested to do fund raising in Mexico and to list their corporate business on the Mexico Stock Exchange.
- Foreign investors are permitted to incorporate a Mexican branch office under the General Mercantile Corporations Law. The opening of a branch office can be approved by the Foreign Department of the Ministry of Economy, only if the company appoint a locally resident representative agent in Mexico.
- The branch office is permitted to;
- Making deeds and contracts with local clients, and
- Bill and then earn income from Mexican clients.
The branch can only work with in the scope defined explicitly by the holding company.
- The preferable use: We suggest establishing a branch office to our customers with high share capital requirements (just like banking sector). Registering a branch office may cost more time and money as compare to registering a corporation. Branch charters are more restricted compared to corporation charters. Branch office are not treated as distinct entity from the holding company, therefore the holding company shall be liable for the activities of the branch office.
- A rep office in Mexico is only allowed to involve in activities other than the commercial activities. This may include;
- Engaging in promotional and marketing activities of the holding company, and
- Market Survey.
- The most favorable usage of rep office will be by our valued clients who do not intend to invoice Mexican customers and pay local tax. A rep office can be used by a holding company for the promotion of its goods and services.