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Mexico company registration

Mexico company registration

As a North American manufacturing hub and a strategic gateway to the Americas, Mexico, with its advantages under the USMCA (United States-Mexico-Canada Agreement), mature industrial chain, and young workforce, has become a key destination for Chinese companies expanding overseas. Worldview Law Firm specializes in SOFOM financial entities and MM manufacturing companies, and has successfully assisted hundreds of Chinese companies in establishing compliant operations in sectors such as automotive, electronics, new energy, e-commerce, and export processing, ensuring their investments benefit from the Mexico Free Trade Agreement.

2nd place
Latin america economies ranking
100%
Foreign shareholding ratio
14
Free Trade Agreement
130 million
Population Market

Recommended Company Type in Mexico

Mexico's core advantages for investment

🌎

Strategic location

As a member of the North American Free Trade Agreement (USMCA), Mexico is an ideal springboard for Chinese companies to enter the North American market. Geographically connecting North and Latin America and covering a consumer population of over 1 billion, it is a key node in the restructuring of global supply chains.

  • It shares a 3,200-kilometer border with the United States, making logistics convenient.
  • 49 international airports and 117 ports with complete facilities.
  • USMCA allows entry into the US and Canadian markets with zero tariffs (a $1.3 trillion market).
  • Major US cities reachable within 24-48 hours
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Trade Agreement Network

Mexico boasts the world's most extensive network of free trade agreements, having signed 14 agreements with more than 50 countries, covering 60% of global GDP, providing Chinese companies with unparalleled market access advantages.

  • USMCA - Zero-tariff access to the United States and Canada
  • CPTPP - Trade Facilitation for 11 Asia-Pacific Countries
  • EU-Mexico Free Trade Agreement - Market of 27 EU member states
  • Pacific Alliance - Integrated Market of Four Latin American Countries
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Strong manufacturing base

Mexico is the world's 12th largest manufacturing country, with mature industrial clusters and a complete supply chain system, especially with significant advantages in the fields of automobiles, electronics, and aerospace.

  • The world's 7th largest automobile producer, with an annual output of 4 million vehicles.
  • Latin America's No.1 exporter of electronic products, with a complete supply chain.
  • The aerospace industry is growing at an annual rate of 17% and has enormous potential.
  • The No.1 supplier of medical devices to the United States
💰

Cost competitive advantage

Compared to the United States and Canada, Mexico offers highly competitive operating costs, including key production factors such as labor, land, and energy, helping businesses significantly reduce operating costs.

  • Manufacturing wages are only one-fifth of those in the United States ($4-6/hour).
  • Industrial land costs are 70% lower than in the United States.
  • Corporate income tax rate is 30% (IMMEX offers preferential rates).
  • Ample reserve of skilled workers (1.3 million engineers)
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Improved investment protection

Mexico has signed investment protection agreements with many countries, including China, to provide legal safeguards for foreign investors and ensure investment security and rights protection.

  • The China-Mexico bilateral investment protection agreement has come into effect.
  • Double taxation avoidance agreement has been signed
  • The intellectual property protection system conforms to international standards.
  • International Arbitration Mechanism (ICSID Member States)
🚀

Emerging Industry Opportunities

Mexico is vigorously developing emerging industries such as new energy, digital economy, and biotechnology, and the government provides preferential policies to support these industries, offering Chinese companies a broad space for investment and cooperation.

  • The new energy vehicle industry is experiencing rapid growth (35% annual increase).
  • Renewable energy installed capacity to increase by 20% annually.
  • The digital economy accounts for 5.8% of GDP.
  • The biopharmaceutical industry receives key government support

China-Mexico economic and trade relations

Bilateral trade volume

$100 billion
Bilateral trade volume exceeded US$100 billion in 2024, representing a year-on-year increase of 18%.

China's investment stock

$8 billion
More than 1,000 Chinese companies have invested and operate in Mexico, creating 100,000 jobs.

Key investment areas

Automobile manufacturing New energy Electronics and electrical appliances Textiles and Apparel Mining and Energy Infrastructure

Key Investment Areas Guide

📍

Nuevo León

Located in the heart of Mexico's industry, near Texas, USA, it boasts well-developed infrastructure.

  • Main industries: automobile, steel, and home appliance manufacturing
  • Advantages: Abundant talent pool, convenient logistics
  • Representative companies: Tesla, Kia, LG
📍

Guanajuato State

It is a center of the automotive industry cluster, with a complete supply chain and strong government support.

  • Main industries: automobile manufacturing, aerospace
  • Advantages: Significant industrial cluster effect
  • Representative companies: General Motors, Honda, Mazda
📍

State of Mexico

Located at the core of the capital economic circle, it boasts a huge market and strong consumption power.

  • Main industries: pharmaceuticals, food, logistics
  • Advantage: Proximity to the largest consumer market
  • Representative companies: Pfizer, Nestlé, Huawei
📍

Baja California

Located near California, USA, it has a well-developed electronics manufacturing industry and convenient export channels.

  • Main industries: electronics, medical devices
  • Advantages: Close to the US West Coast market
  • Representative companies: Samsung, Honeywell, Foxconn

IMMEX Bonded Processing Certification

IMMEX Certification Application Requirements

Essential for export companies

IMMEX is a unique Mexican bonded processing program that allows the temporary import of raw materials and equipment for processing and export, enjoying zero-tariff treatment.

Application requirements

Annual export value of US$500,000 or more, or exports accounting for more than 10% of sales.

Approval time

Approval will be granted within 15 working days after submission of complete materials.

Validity period

Initial approval is for one year, after which an indefinite period can be applied for.

Compliance requirements

Submit an annual report every May to maintain the export ratio.

Frequently Asked Questions about Mexican Company Registration

Can foreigners own 100% of a Mexican company?

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Yes, most industries allow 100% foreign ownership. Except for the following restricted sectors:

  • Domestic land transportation, radio and television broadcasting, etc., are restricted by 49%.
  • Foreign investment is prohibited in strategic industries such as oil extraction and power transmission.
  • Land in border and coastal areas must be held in trust.

Most sectors, including manufacturing, services, and technology, are fully open.

Is a local legal representative always required when registering a company in Mexico?

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Yes, this is mandatory under Mexican law. The legal representative must be a Mexican citizen or a foreign resident with a work permit. Solution:

  • Hire a professional service company to provide a nominal legal representative
  • After applying for an FM3 work visa, you can be assigned as legal representative
  • Hire local executives

How long does it take to apply for an RFC tax number?

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The normal process takes 3-5 business days. However, it can be expedited through the online pre-application system.

  • Online pre-application: 1-2 days to obtain a provisional RFC
  • Formal registration: Obtain the official RFC in 3-5 days
  • e.firma application: Additional 2-3 days

It is recommended to prepare all documents in advance to avoid having to make multiple trips to obtain additional materials.

What is variable capital? Why is it important?

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Variable capital is a feature of Mexican company law, allowing companies to establish a variable portion in addition to fixed capital.

  • Capital increases or decreases do not require amendments to the company's articles of association.
  • No notarization required, only a shareholders' meeting resolution.
  • Save time and notary fees
  • Facilitates the introduction of investment or adjustment of equity.

This is why most companies choose the "de CV" (variable capital) form.

Is IMMEX certification necessary for all companies?

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Not essential, but extremely important for manufacturing and exporting companies:

  • Zero tariffs on imported raw materials and equipment
  • VAT refund immediately
  • Simplify customs clearance procedures
  • It can save 15-20% of operating costs.

If your business involves processing imported raw materials and then re-exporting them, IMMEX certification is required. It is not required for purely domestic sales or service companies.

How is the mandatory profit sharing (PTU) calculated in Mexico?

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Mexican law requires companies to distribute 10% of their pre-tax profits to their employees (PTU).

  • The PTU for the previous year must be paid before the end of May each year.
  • All employees are allocated according to the number of working days and a percentage of their wages.
  • The new company is exempt from the first year's expenses.
  • Taxes can be reduced through legal tax planning

This is a mandatory requirement under labor law and must be considered in financial planning.

How much does it cost to lay off employees in Mexico?

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Mexican labor laws offer strong protections for employees, and the costs of dismissal include:

  • Severance pay equivalent to 3 months' basic salary
  • 20 extra days' pay for each year of service
  • Compensation for unused annual leave
  • Profit sharing ratio in that year
  • If the dismissal is deemed unjust, the employee must pay all outstanding wages.

It is recommended to sign a fixed-term contract and strictly comply with labor law procedures.

Are Mexican companies required to have a physical office?

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Yes, a physical address within Mexico is required.

  • It can be a leased office or warehouse.
  • Virtual offices are only available in certain service industries.
  • Manufacturing must have physical production sites
  • SAT will be verified on-site.

Shared office space can be used initially, but it is necessary to ensure that government correspondence can be received.

Ready to do business in Mexico?

Our professional team is ready to provide you with Mexican company registration and business legal services

Contact us