What paperwork do you need to start a business in Mexico?
Considering the current situation, starting your own business in Mexico is one of the best solutions since it is an opportunity to grow both personally and professionally, as well as economically.
In view of the current situation, starting your own business in Mexico is one of the best solutions, since it is an opportunity to grow both personally and professionally, as well as economically. Mexico currently offers financial support in the five stages of entrepreneurship, which are the stage of birth, growth, consolidation, high quality, and spin-off.
This support is offered through different financial institutions such as the Mexican Stock Exchange, the Mexican Institute of Finance Executives, the Association of Multiple Purpose Financial Companies, and Private Equity. To this, we must add that today there is an infrastructure that supports projects and promotes international trade, at the same time that Mexico is a country that has different neglected priority sectors, which are an excellent opportunity to develop new and innovative business ideas.
Procedures and requirements to start a business in Mexico
Once we have seen that it is a good opportunity, we must emphasize that there are a series of procedures and requirements to be fulfilled in order to start a business in Mexico. This generates many doubts, but fortunately, this article offers very useful information on how to start a business in Mexico. The following will show you the different legal obligations that you must comply with.
Land use permit
The first step you must take in order to start a business in Mexico is to apply for a land-use permit. To do so, you must go to the one-stop-shop in your city and present the following documents, which may vary depending on where you are going to open your business. The land use permit is for the establishment where you will carry out your business and is valid for only two years.
Official identification document.
Documents proving legal personality.
Completed and signed land use license application.
Property tax bill.
Proof of payment.
Opening of mercantile establishments
The opening of mercantile establishments is necessary to notify the authorities of the opening of your business and to obtain it you will have to go to the municipal capitals or to the delegations. The requirements will vary depending on the state where you process it, but in general, these are the requirements to obtain the document of the opening of the establishment.
Completed and signed opening application.
Articles of Incorporation of the company or RFC.
A document that proves the location of the business.
License of operation
The application for an operating license will only be necessary if your business will sell alcoholic beverages. On the other hand, if it is a bar or discotheque, you will need a type B license, while if it will be a hotel or restaurant, it must be a type A license.
Outdoor advertisement
The outdoor advertisement is a permit that serves to obtain the authorization to install an advertisement outside the establishment where your business will take place in order to advertise. To obtain it you have to go to the Secretary of Urban Development and Housing, and there you will receive the documents you will have to submit, which will vary depending on the state where you are going to carry out the procedure.
Federal Taxpayers Registry
Finally, one of the most important requirements to start your business in Mexico is to register with the Ministry of Finance and to do so you will have to pre-register electronically in the SAT portal. Here you will be asked for the following information: full name, CURP and commercial activity. You will also have to specify if you are going to register as a legal entity or as an individual, and if you are registering as a legal entity, you will have to bring the articles of incorporation of the business.
Now you know all the requirements that you must fulfill, and to finish, before starting a business in Mexico you should study the environment in order to take advantage of the opportunities offered by the market, which are not few. Likewise, it is important to make an objective business plan and a market study, as well as to inform yourself about the different institutions that give help to entrepreneurs in Mexico, since this way you will obtain many more facilities at the time of starting a business.
Tips on how to start a business in the Mexican market
The successful entry into the Mexican market is not completely different from establishing sales channels in the United States, according to the US Department of Commerce. In general, the strategy should be based on the establishment of an authorized agent, representative, or distributor for the products and services that are to be sold in Mexico, or the opening of a representative office.
Given the size of the market, the strategy must consider specific regional territories. Most companies assign Mexican agents or distributors in different locations. Many companies are happy to use three or four specific territories, often centered in Mexico City for central and southern Mexico, Guadalajara for western Mexico, Monterrey for northeastern Mexico, and Baja California for the northwest border and the maquiladora.
To sell to the government, it may be important to have an office or a local representative. Meanwhile, for regulated products or services, such as healthcare solutions, you will also have to give time and use local support to obtain regulatory approvals. Beyond your efforts to establish representation, organize it in territories, and obtain approval of regulated products, the promotion plan should be considered.
Trade fairs, advertising, social media campaigns, and sales calls work well in Mexico, recommends the Department of Commerce. Mexican buyers are generally price-sensitive, and government buyers have strict rules to favor lower price offers, so establishing an effective price structure is key. Legal advice, protection of intellectual property, sales, shipping, and after-sales support must be elements of the strategy.
To do business in Mexico, it is crucial to develop and maintain close relationships with customers and partners. Mexicans prefer regular direct communication, especially in the initial stages of establishing a good relationship. Email is widely used and platforms like WhatsApp are very popular for quick interactions.
Mexican consumers, in general, have a lot of knowledge about the products and services of the United States. Due in large part to the proximity to the United States, American popular brands are widely recognized in Mexico.
The US Commercial Service can evaluate the market potential of products and services, advise on export strategies and facilitate commercial agreements with potential clients and/or partners through its three offices located in Mexico City, Guadalajara, and Monterrey.
