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How to Open a Company in Mexico: Seven Essential Steps

How to Open a Company in Mexico: Seven Essential Steps


Opening A Company VS Choosing An Outsourcing Partner 


Below are the seven steps companies must take to open a company in Mexico. Some companies, however, prefer to establish a company in Mexico by partnering with a nearshore service provider like Intugo. Intugo provides all the necessary services to initiate and maintain operations in the country. Intugo takes care of its clients:


Open a company in Mexico: payroll service Payroll and benefits function

Open a company in Mexico: recruiting hr services Recruiting and human resources

intugo invoicing services Itemized invoicing

intugo accounting services Mexican accounting and taxes

Intugo facilities services Facilities and infrastructure management

intugo purchasing sourcing services Purchasing and vendor sourcing.


However, parties that open a company in Mexico without entering into a partnership with a nearshore service provider such as Intugo must follow the steps outlined below.


  1. Request name authorization at the Ministry of Economy to open a company in Mexico


For this procedure, a notary or public notary services are necessary. This individual will sign the application for the name of your company. Subsequently, consider there may be companies already established with your chosen name. To expedite the process, we recommend you request several different names when going through this process to open a company in Mexico.


  1. Create the constitutive act to establish a company in Mexico


Together with your partners and legal advisor, you will be able to make your articles of incorporation. Undeniably, this is an essential document since it will be the birth certificate of your company.


  1. Notify use of denomination


Check that the notary who signed your articles of incorporation informs the Ministry of Economy of everything related to the new company, such as its partners, its name, and the formal presentation of the company.


  1. Register the minutes with the RPPC


To open a business in Mexico, you must register your certificate before the Public Registry of Property and Commerce (RPPC). Subsequently, this governmental body is in charge of protecting and monitoring companies. The registration fee is paid according to the state where you register the company.


  1. Register the company in the SAT


You must have your Federal Taxpayer Registry to obtain the RFC of your company. Then, with the RFC number, you can issue or receive invoices and have your finances in order with Mexico’s tax authority, the SAT.


  1. Register the company with the IMSS


It does not matter if there are only two people in the company; you need to register with Mexican Social Security (IMSS) to hire personnel or future partners, so you offer them this legal benefit and save a fine from the institution.


  1. Register with the required organizations


Nevertheless, depending on the type of business activity, you may have to comply with additional registrations. For example, this could be with the Ministry of the Environment or the Mexican Institute of Intellectual Property.


Moreover, you need to have your papers in order, define your goals, and start the paperwork to open a business in Mexico! According to a World Bank report, Mexico is the best country in Latin America to do business.


How much money is needed to open a company in Mexico?


Outsourcing in MexicoAccording to BANCOMEXT data, 89% of entrepreneurs started their business with their own money, and only 3% received some investment. We know that finances are often a delicate subject, but if you are ready to open a company in Mexico, you must know how much money you need.


It all depends on the type of business you want to open in Mexico. The prices of procedures required to do this commonly range between USD 1,000 and USD 2,000, taking into account:


  • Cost of preparation of the constitutive act: between USD 900 and USD 1,200.


  • Registration to the RPPC: This expense is approximately USD 120.


  • Other records (depending on the sector) cost between USD 200 and USD 300.


Now that you know how much it costs to open a company in Mexico, you may ask yourself, how long it takes to go through the process? Overall, it will depend on the type of business, but the approximate time is between 30 to 45 days.


Types of companies you can create in Mexico


This classification is according to the business activity:


  • Industrial companies: They are dedicated to manufacturing goods from raw materials.


  • Manufacturing companies are in charge of transforming raw materials into production goods.


  • Commercial companies sell the final product and are related to the producer and consumer.


We can also classify them depending on the level of shareholders and capital. They can be microenterprises, small or medium-sized companies ( SMEs ), or social and private companies. The established company type depends on the product or service you offer.


Open A Company In Mexico (1 year since establishment)


Establish a business in Mexico individually or in partnership: What is the difference?


This is one of the fundamental questions when someone is planning to open a company in Mexico. For this issue, we have two important terms to remember:


  • Natural person: You remain the absolute owner of the company, taking complete charge of the business obligations before the law.


  • Moral person: The company is constituted of partners and shareholders.

Nearshore Mexico








Here, it is crucial to verify the types of companies in Mexico. The Mexican General Law of Commercial Companies recognizes in its first article these:


  • Public Limited Company (SA): The amount of contributions determines the partners. Business decisions are made by vote based on the percentage of capital owned.


  • Limited Liability Company (S. de RL): This type of business comprises a maximum of 50 members. Actions that limit or expand the distribution of profits between partners are allowed here.


  • Sociedad por Acciones Simplificadas (SAS): This form of business can be established as a natural person, electronically, and without the need for a notary. It is ideal for small businesses since income can be, at most, approximately USD 300,000 annually.


  • Cooperative Society (SC): This type of business requires at least five partners to be incorporated. All partners will have the same rights and obligations, regardless of contribution amount.


Outsourcing Mexico



Unquestionably, the seven steps mentioned before are crucial for starting a company in Mexico as a stand-alone entity. However, by partnering with Intugo, you can run your business in a way that will allow you to focus on your core competencies without the intricacies of doing business in Mexico.

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