How to Open Your Business in Mexico in 24 Hours Without Needing a Partner

Opening your business in Mexico can be tricky. Navigating the legal landscape of another country can be daunting, but it shouldn’t be. In this guide, you will learn how you can start your own legal entity in Mexico with a few simple steps.

Mexico is an attractive destination for entrepreneurs for several reasons. Its strategic location offers easy access to North and South American markets, and its numerous free trade agreements make it a gateway for international trade. The country's diverse and growing economy, coupled with a young and skilled workforce, provides a fertile ground for various business opportunities. Additionally, Mexico's government has made significant strides in reducing bureaucratic hurdles and fostering a business-friendly environment, making it easier for foreign investors to establish and operate businesses.

Before 2016, Mexican legislation only allowed the creation of corporations for two people or more. On March 14, 2016, a new legislation was enacted that allowed the formation of unipersonal corporations. We are talking about the creation of the “Sociedad Anónima de Acciones Simplificadas,” which translates to “Simplified Joint Stock Company” or, usually known as, “SAS.”

There are a lot of benefits to incorporating an “SAS”:

1. You can establish it as a sole proprietorship; that is, you do not require partners to create your company.

2. There is no minimum capital requirement to create your “SAS.”

3. Your personal assets are protected since you are only responsible for the capital contributed to the “SAS.”

4. You do not need to hire public notary or broker services to create your “SAS.”
   

Mexico City

Benefits of Opening a Company in Mexico

1. Strategic Location: Mexico's proximity to the United States and access to Latin American markets make it an ideal hub for trade and distribution.

2. Economic Growth: With one of the largest economies in Latin America, Mexico offers a stable and growing market for various industries.

3. Trade Agreements: Mexico has numerous free trade agreements, including the USMCA, which provide preferential access to global markets.

4. Skilled Workforce: The country boasts a young and educated workforce, particularly in sectors like manufacturing, technology, and services.

5. Cost Efficiency: Operating costs in Mexico, including labor and real estate, are generally lower than in many other countries, offering cost advantages for businesses.

6. Government Support: The Mexican government provides various incentives and support programs for foreign investors, including tax benefits and grants.

So, let’s say you are interested in incorporating an “SAS.” What documentation do you need and how do you start the process?

Steps to Incorporate an SAS in Mexico

Step 1: Authorization of Company Name First things first, you need to have authorization from the Secretary of Economy (Secretaría de Economía) to use a commercial name (Autorización de uso de Denominación). This process ensures that your company’s name is available to use in Mexico (this is not the name of the brand, that is a separate process).

Step 2: Online Incorporation Process Once you have your name suggestion approved, go to the following link where you can start the creation process: Create Your SAS.

Once there, you’ll see a link that says “Constitución de Sociedad de Acciones Simplificada - Persona Física” (Incorporation of Simplified Joint Stock Company). The process is simple and shouldn’t take more than a few hours to complete. The process is totally free.

Additional Considerations

• Tax Registration: After forming your SAS, you must register with the Tax Administration Service (SAT) to obtain your tax identification number (RFC).

• Bank Account: Open a corporate bank account in Mexico to handle your business transactions.

• Permits and Licenses: Depending on your business type, you may need additional permits or licenses from local or federal authorities.

• Accounting and Compliance: Ensure you keep accurate financial records and comply with Mexican tax and business regulations.

Welcome to Mexico and its beautiful people & culture. Starting your business here can be a rewarding experience, and with the right steps, it can be done swiftly and efficiently.

If you need additional support or you want to know if a SAS is the right corporate structure for your business feel free to reach out and we’ll gladly help you make your dreams come true.