How to Start a Business in Mexico as a Non-Resident (2026 Complete Guide)

Mexico's Appeal for International Business in 2026

Nearshoring boom: Mexico has become a primary beneficiary of US companies "nearshoring" production and services away from Asia. The USMCA trade agreement makes Mexican manufacturing and services highly cost-competitive for US market access — comparable tariff treatment, geographic proximity, same time zones.

Market size: 130 million people, $1.4 trillion GDP — 15th largest economy globally, 2nd largest in Latin America.

USMCA: The successor to NAFTA — ensures most goods manufactured in Mexico with sufficient local content enter the US and Canada duty-free. For manufacturers and logistics companies: a Mexican entity is often strategically essential.

Challenges: 30% CT (high by Latin American standards), complex regulatory environment, varying security situations by state, currency (MXN) volatility, and bureaucratic complexity in some sectors.

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Entity Types for Non-Residents

S. de R.L. (Sociedad de Responsabilidad Limitada): The Mexican private limited company equivalent. Minimum 2 shareholders (socios), maximum 50. Minimum capital: MXN 3,000 (negligible — approximately $150). Governance: less formal than S.A. — preferred by small to medium international businesses.

S.A. (Sociedad Anónima): Mexican joint stock company. Minimum 2 shareholders. Minimum capital: MXN 50,000 fixed + MXN variable portion. Preferred for larger companies, those seeking formal corporate governance, or those that may raise equity.

Most non-residents: S. de R.L. for flexibility, or S.A. for formality.

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Step 1: Obtain AMPI Permit (if required)

Foreign investment in certain Mexican companies requires a permit from the National Commission of Foreign Investment (CNIE) — for acquisitions above certain thresholds or in specific sectors. For direct formation of a new company: generally no prior AMPI permit needed, but the company must register its foreign investment at the Foreign Investment Registry (RIE) within 40 business days of formation.

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Step 2: Notarial Deed — Mexican Notary Requirement

• Unlike UK or US company formation (online, self-service), Mexican company formation requires a Notaría Pública (Mexican civil law notary). The notary:
• Drafts the Articles of Incorporation (Acta Constitutiva) in Spanish
• Authenticates the document
• Registers the company with the Public Registry of Commerce (Registro Público de Comercio)

Cost: MXN 10,000–30,000 ($500–1,500) for notary services. Timeline: 3–10 business days from document submission.

You do not need to be present. A power of attorney (Poder Notarial) allows a Mexican attorney or agent to sign on your behalf. The PoA must be apostilled in your country of residence if executed abroad.

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Step 3: Tax Registration — RFC with SAT

All Mexican companies and their representatives must obtain an RFC (Registro Federal de Contribuyentes — Federal Taxpayer Registry). Register at sat.gob.mx or through a Mexican accountant.

Required: CURP (Mexican personal ID number for Mexican nationals) or equivalent for foreign directors. Foreign individuals obtaining an RFC may need to visit a SAT office in person.

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Step 4: Municipal Business Licence (Licencia de Funcionamiento)

Most commercial activities require a business operation licence from the local municipality (Ayuntamiento). Requirements vary by city and activity — typically require: RFC, company formation documents, physical address in Mexico.

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Step 5: Open a Mexican Bank Account

BBVA Mexico (formerly Bancomer): Largest private bank in Mexico. Strong SME services. International wire capability. Banamex (Citigroup): Second largest. International connections excellent. Banorte: Strongest for domestic Mexican market relationships. Santander Mexico: Good for international companies with Spanish/European headquarters. HSBC Mexico: Strong for international companies with UK/European headquarters.

All major Mexican banks require in-person account opening or via a local representative. Timeline: 1–3 weeks.

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Corporate Tax in Mexico: 30%

Mexico's corporate income tax (ISR — Impuesto Sobre la Renta) is 30% — among the highest in Latin America. Key considerations:

Withholding on dividends to non-residents: 10% (additional dividend tax on top of corporate tax — so effective double tax layer). Mexico has DTTs with UK, US, Canada, Germany, France, Netherlands, and many others — treaty rates vary.

Transfer pricing: Mexico has aggressive transfer pricing rules — OECD-compliant, with mandatory disclosure (DISIF — Declaración Informativa Sobre Situación Fiscal) for large companies. Intra-group transactions with foreign entities require contemporaneous TP documentation.

IEPS (Excise Tax): Applies to specific goods (tobacco, alcohol, soft drinks, high-calorie food, fossil fuels). Not relevant for most service companies.

IVA (VAT): Mexico's VAT equivalent. Standard rate: 16%. Border zone rate: 8% (northern border areas adjacent to US). Monthly IVA returns required.

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The Nearshoring Opportunity

Mexico's most significant business opportunity of 2024–2026: nearshoring for US companies. Companies from South Korea, China, Japan, Germany, and other countries are establishing Mexican manufacturing or service operations to benefit from USMCA tariff advantages.

For a non-resident founder targeting US enterprise clients: a Mexican entity that can manufacture, assemble, or provide services within USMCA rules of origin provides significant competitive advantage.

Key nearshoring cities: Monterrey (tech, manufacturing), Guadalajara ("Mexico's Silicon Valley"), Tijuana (US border, electronics), Queretaro (aerospace), Yucatan (BPO services).

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FAQs

Do I need a Mexican partner to start a business? No — 100% foreign ownership is permitted in most commercial and industrial sectors. Restricted sectors include: petroleum extraction (state monopoly), broadcast media, retail gasoline, some air and land transport activities. Check the Foreign Investment Law for the relevant sector.

Can I start a business in Mexico remotely without visiting? The notarial deed and many bank account openings require physical presence or an empowered local representative. Practical approach: engage a Mexican law firm or corporate service provider who handles the process with a PoA.

How does USMCA affect my company's supply chain? USMCA requires "rules of origin" — products must contain sufficient North American content to qualify for tariff-free movement within the US, Canada, Mexico. For manufacturers: consult a trade attorney on qualifying manufacturing operations.

What is a SOFOM and is it relevant? A SOFOM (Sociedad Financiera de Objeto Múltiple) is a Mexican non-bank financial entity used for lending and leasing. Relevant if you're entering the Mexican financial services market — subject to CNBV (banking regulator) oversight.

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