Doing business in Mexico might be exactly what your organization needs to succeed, with lower wages for skilled workers and lower transportation costs since Mexico is situated closer to the US and Canada. Location guarantees faster production turnaround time, not to mention ease of communication, and similar time zones.
Register your business in Monterrey, the vibrant City of Mexico
Monterrey: the most advanced region in Mexico
Boasting a profoundly qualified labour force and fantastic development prospects, the economically progressed Monterrey is an obvious choice for international businesses keen on entering the Mexican markets.
Throughout the past decade, there has been a surprising change in Monterrey. Today, the country’s second-biggest city has turned into a different energetic metro, loaded up with skilled individuals who have an undeniable spirit. Its economy is solid, its cultures are many, and its quality of life is second to none. Monterrey has one of the youngest, fastest-growing, and most diverse populations anywhere in the globe.
40 % of the largest Mexican global companies are located in Monterrey and its proximity to the United States means Monterrey plays an important role as a strategic logistics point for trade between the US and Latin America.
Why you should do business in Monterrey?
- Sound investment : Monterrey’s current status has been built on its history of industrial activity, coupled with the region’s ability to promote competition and a highly productive workforce. There are 100 universities in the state, which help to procure the workforce for the many foreign companies that have been inaugurated here. In addition, half of Mexico’s largest businesses have headquarters in the Monterrey region. And the inflow of foreign and domestic investment shows no sign of slowing.
- Government support : The local government supports foreign direct investments with incentives ranging from subsidized land, training programs, and lower payroll tax rates, relying on the amount of new employment created or the level of investment planned.
- A gateway to Mexico and Central America : It’s not only Mexico’s trade agreements that are attractive, as the local market offers substantial opportunities for incoming businesses. Monterrey and its metropolitan area are evolving at an accelerated pace, with full employment, and income and average spending levels higher than those in the rest of the country.
Monterrey is Mexico’s largest Recipient of Foreign Direct Investment, it is the Most productive Human Capital in Mexico, and it has the highest GDP per capita In Mexico.
Essential considerations for company formation in Mexico
If you plan to register a business in Mexico, you will have a number of things to consider. Those include:
- Find a legal representative : By law, you will require a legal representative in Mexico if you plan to open a business without residing there permanently yourself. That legal representative can be any legal adult who is not prevented from occupying such a role. However, it is good to assign someone with experience in the local business community and an understanding of either corporate law or accounting, considering that they will be significant parts of your business. Your legal representative will have to either hold Mexican citizenship or have permanent resident status, as well as being in ownership of a local tax ID. This individual will represent you in front of authorities, and hold certain powers to represent you in legal matters.
- Entity type : One of the first things that you can call on your legal representative to help you with, is choosing your entity type. Because depending on the idea of your business, the number of financial backers you have, and how you intend to oversee it, there are various types of companies in Mexico to choose from.
- Economic activity : When you register a business in Mexico, you have to accurately register your economic activity, because negligence to do so could result in legal complications. Your legal representative will advise you on how to properly define your activities in order to remain compliant with local regulations.
- Business opportunities : If you are not entering the Mexican market with a specific business goal, you will need to do some market research to identify the category you want to move into and the business opportunities you wish to harness. Once again, an experienced legal representative will be able to provide advice in this regard or put you in touch with contacts who could help.
How to register a business in Mexico
To register a business in Mexico, you will need to follow these steps:
- Grant your legal representative power of attorney (POA): Your legal representative should be able to draw up a POA for you to sign, which will grant them authority to act and sign official documents on your behalf.
- Draft your entity’s company bylaws: The company bylaws frame the purpose of your business, as well as how it will be structured and function. To be approved by local authorities, you will need to have them legalized by a notary public.
- Register your business with local authorities: Once the company’s bylaws are legalized, your representative will be able to register your business in Mexico with the Public Registry of Property and Commerce. During this procedure, your legal representative must specify any real estate held by the company, as well as its commercial purposes and goals.
- Apply for your corporate tax ID number: Your corporate tax ID number will be significant for specifying the entity on invoices and other official financial documents. The corporate tax ID number will be granted by Mexico’s Tax Administration System.
- Open a corporate bank account: When you receive your tax ID, you will be able to open a corporate bank account. Your choice of provider may be informed by the type of business you are involved in. Your legal representative will provide guidance.
- Deposit your initial investment: The last step to registering a business in Mexico is to deposit your initial investment in your corporate account. Once that has cleared, you are ready to do business.
If you are keen on taking advantage of the business opportunities available in this major market, let’s go ahead together and contact your Damalion expert now to open your company in Mexico.
