As foreign companies increase their investment in Mexico, we are going to take a step back and provide an overview of how to form a company and obtain permanent residency. This article offers the key steps to successfully form a company in Mexico and ways to obtain legal status through it. Over the past two decades, Mexico has been working hard to open its economy to foreign trade and investment, resulting in more than 25 bilateral free trade agreements worldwide. In order to facilitate the inflow of foreign entrepreneurs and investors, the administration has made efforts to simplify the process, and the foreign ministry has simplified visa applications through the 2012 Immigration Reform Act.
First, let’s go through the steps required to form a company in Mexico.
1. Register your company’s name: In order to form a company in Mexico, you must register the name of your company and obtain authorization from the Ministry of Foreign Affairs. This process usually takes no more than 2 working days.
2. Apply for a tax registration number: Consult a public notary assigned by the government to apply for a tax registration number. You will need to sign the incorporation deed before receiving your tax registration, which should take a maximum of 2 days.
3. Register your incorporation deed: Register your incorporation deed with the Public Register of Commerce. It usually takes 17 days to receive confirmation.
4. Register for your tax ID number: Register with the Ministry of Finance and Credit to receive your tax ID number. This process typically takes 1 to 3 days.
5. Register for social security: Register your company with the Mexican Social Security and open individual retirement savings accounts for your future employees. This step usually takes 2 to 5 days.
6. Register your company’s account: Register for payroll tax with the local tax administration, which is the SecretarÃa de Finanzas del Gobierno del Distrito Federal if you are setting up your company in Mexico City. This process should take 1 day.
7. Register with the National Business Information Registry: Register with the SIEM, which is a complete registry of all existing companies in Mexico. The registration cost depends on the number of employees you plan to employ.
8. Declare your company with the National Institute of Statistics: Register with the National Institute of Statistics to ensure your future business achievements are included in national statistics.
Once you have formed your company in Mexico, you will need to apply for the correct visa to exercise your profession. There are two types of visas for foreigners who want to work or form a company in Mexico:
1. Temporary residency visa with permission to work: This is the most common visa for foreigners who want to live in Mexico. It allows you to work, study, and open a business in Mexico. The temporary visa has a validity period of one year and can be renewed.
2. Permanent residency visa: After the fourth renewal of the temporary visa, you can apply for permanent residency. This visa is suitable for foreigners who plan to live in Mexico for four years or more or those who want to settle down permanently. With the permanent residency visa, you can work, study, and run your business freely for an unlimited period of time.
Please note that permanent residents cannot be out of Mexico for more than 18 months within a five-year period, as their residency will be withdrawn. The process of applying for permanent residency usually takes between 1 to 6 months, so it’s advisable to apply well in advance to avoid any rejections due to missing documents or other mistakes.
The documents required for visa applications to form a company in Mexico include the official immigration application form, original passport and copy, original immigration card (FMM form), original and copy of proof of residency, and passport-style photos. Additionally, independent professionals or business investors should provide a written letter in Spanish addressed to the National Institute of Immigration, requesting the issuance of the temporary residency visa.
If you need assistance with doing business in Mexico, Biz Latin Hub can provide a comprehensive range of corporate support solutions, including accounting and taxation, company formation, legal services, and visa processing. Contact us today to learn more about how we can help you achieve your commercial goals.
